On December 18, 2018, the U.S. Securities and Exchange Commission (SEC) issued a press release detailing final rules for one of Dodd-Frank’s executive compensation provisions, which will “require companies to disclose in proxy or information statements for the election of directors any practices or policies regarding the ability of employees or directors to engage in certain hedging transactions with respect to company equity securities.” Read More
Current Pay Governance Viewpoints
John R. Ellerman
Aubrey E. Bout, Brian Wilby and Perla Cruz
CEO pay continues to be an extensively discussed topic in the media, in the boardroom, and among investors and proxy advisors. CEO total direct compensation (TDC; base salary + actual bonus paid + grant value of long-term incentives [LTI]) has increased at a moderate pace in recent years — in the 2-6% range for 2011-2016. However, CEO pay accelerated in 2017 at an 11% increase, likely reflecting sustained robust financial and total shareholder return (TSR) performance. Our CEO pay analysis is focused on historical actual TDC, which reflects actual bonuses; this is different from target TDC or target pay opportunity, which uses target bonus and is typically set at the beginning of the year. Read More
John R. Ellerman
During the last week of September 2018, Governor Jerry Brown signed a law mandating public companies headquartered in California must have at least one female member on their board of directors by December 31, 2019. Further, companies with less than six members on the board will be required to have at least two female directors by the end of 2021, and companies with six or more directors will be required to have at least three female directors by the end of 2021. The legislation, referred to as SB-826, is in direct response to legislators and regulators who have found women to be underrepresented on public company boards. The Board of Governance Research LLC, in a 2017 study of Russell 3000 companies headquartered in California, found that more than 25 percent of the 441 reported companies had no female directors. Read More
John R. Ellerman
In 2004, the Securities and Exchange Commission’s (SEC) Division of Investment Management issued letters to two proxy advisory firms, Egan-Jones Proxy Services and Institutional Shareholder Services (ISS), that assured mutual fund managers they could rely on the vote recommendations of the two firms. On September 13, 2018, the SEC Investment Management staff decided to rescind the two letters. Read More
Team Member Highlight
- Connie Lin Consultant | Dallas
- View Articles by Connie Lin
Connie Lin is a Consultant based out of the Dallas office of Pay Governance. She has over seven years of experience working with Compensation Committees and Senior Management teams on various executive compensation issues, including competitive pay remunerations for executives and non-employee directors, pay-pay-performance assessments, short- and long-term incentive plan design, and performance goal difficulty assessments. Connie’ clients encompass a variety of industries, including life sciences, financial services, and technology.
Prior to joining Pay Governance, Connie worked in the executive compensation practice at Towers Watson and Watson Wyatt in Boston.
Connie holds a S.B. in Management Science with a concentration in Finance and minor in Economics from the Massachusetts Institute of Technology.