Pay Governance LLC is an independent firm that serves as a trusted advisor on executive compensation matters.
Our work helps to ensure that our clients' executive rewards programs are strongly aligned with performance and
supportive of appropriate corporate governance practices.
The Harvard Business Review [HBR] recently published an article, “Stop Paying Executives for Performance,” by Professor Dan Cable and Associate Professor Freek Vermeulen of the London Business School. The authors present arguments and analysis that incentives do not motivate executives to improve corporate performance. In fact, they argue that incentives might damage performance. Read More
Last month, U.S. regulatory agencies released two sets of new rules affecting executive compensation. One set of the new rules has been developed by the Department of Labor (DOL) and deals with defining who is a fiduciary pursuant to rendering investment advice with respect to an employee benefit plan (subject to ERISA) or an individual retirement account (IRA). The DOL’s fiduciary rule is considered to be a Final Rule and will become applicable on April 10, 2017. The second set of rules is a proposal by six U.S. financial regulatory agencies (Securities and Exchange Commission, Federal Reserve Board, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, National Credit Union Administration, and Federal Housing Finance Agency) setting forth new policies and rules pertaining to incentive compensation plans of certain financial institutions. Read More
Yesterday’s (April 12, 2016) Equal Pay Day produced an extraordinary volume of discourse and disclosure on a vitally important topic – and one that is surfacing more frequently at the Compensation Committee level. Read More
Proxy executive compensation and Compensation Discussion & Analysis (CD&A) disclosure is principally based upon a one-year look back at executive compensation forms, levels, policies, and practices. In addition, the proxy tables and schedules which disclose the historical pay forms and levels for the Named Executive Officers (NEOs) are fixed in format and do not allow for any flexibility in reporting NEO compensation beyond that which is prescribed by the Securities and Exchange Commission (SEC). Read More
John R. Ellerman is a founding Partner based in the Dallas office of Pay Governance. John is an active consultant who advises the compensation committees of Fortune 500 companies. Several of these clients have been served by John for 15 years or more. John's clients are principally in the energy services sector; however, he also has clients and relevant experience in the retailing, high technology, general manufacturing, casual dining, and financial services industry.
Prior to joining Pay Governance, John was the managing partner in the executive compensation practice for Towers Watson (formerly Towers Perrin). For the last 15 years, John was the practice leader for that firm's executive compensation and rewards practice for the U.S. Western region.
John is a noted speaker on executive compensation and has presented to The Conference Board, WorldatWork, the Directors College of Corporate Governance, and other prominent groups. He was a contributing author of Marking Mergers Work: The Strategic Importance of People. John is often quoted in the business press and has been cited in The Wall Street Journal and other major newspapers.
In addition, John has held an appointment to the Division of Sponsored Research at M.I.T. After completing his academic pursuits and before entering the consulting profession, John served two years in the Department of Defense as a systems analyst.
John has both BBA and MBA degrees from Stetson University.
CompensationStandards.com Webcast on Compensation Committees
Aired on March 3, 2016. Diane Lerner, Managing Partner, presented.
Learn how to untangle the complex issues that compensation committees face in exercising their fiduciary duties against a backdrop of increased shareholder activism, potent proxy advisor policies, an active plaintiff's bar and heightened media scrutiny. You'll obtain practical guidance about the key steps to implement a successful committee process.
To be redirected to the CompensationaStandards.com to view or listen to the audio transcript, click here.
March 1, 2016
Pay Governance Adds Partner to Its Roster-Joe Mallin brings 30 years of Experience to the Firm
Joe Mallin has joined the firm as a Partner. In this role he is responsible for working with clients across industries on a wide range of executive compensation issues. He will be based in Atlanta and has more than 30 years experience in the executive compensation industry.
“The fundamental philosophy of executive compensation is to ‘attract, retain and motivate’ a talented management team. So it’s concerning when you hear incentive awards are just put in desk drawers until plans mature,” said Pay Governance managing partner John England.