Some companies in the oil and gas, energy, utility, and manufacturing industry sectors have included safety compliance and/or improvement as a performance metric in their incentive compensation plans. Safety as a performance criteria appears frequently in incentive compensation plans for both executives as well as broad-based employee groups. Now, regulators have raised a potential problem with the use of safety as a performance metric. Read More
Current Pay Governance Viewpoints
John R. Ellerman, Brian S. Scheiring and Keith Jesson
Resisting Homogenization of the Executive Pay Program – Update Motivating the executive team while satisfying shareholders and achieving successful Say on Pay votesBy John R. Sinkular and Ira T. Kay
In today’s environment, with annual Say on Pay (SOP) votes, intense external scrutiny and the need to strongly align pay with performance, it is increasingly important for companies to be confident in their executive pay program. The foundation of a sound executive pay program is built on the company’s business strategy and talent needs, which, collectively, must be achieved in order to create shareholder value. Read More
The SEC's Mandated CEO Pay Ratio in the Context of Income Inequality:Perspectives for Compensation CommitteesBy Ira T. Kay and Blaine Martin
At a recent Compensation Committee meeting, a director remarked, “As we discuss our CEO’s target compensation for next year, we need to remember that there is an ongoing debate about income inequality.” Income inequality and executive compensation are two of the most controversial issues in modern American economic and political discourse. The forthcoming mandated disclosure of the CEO pay ratio will link these two issues directly in the boardroom. How much of the increase in inequality has been caused by CEO pay, and is this a failure of corporate governance? This Viewpoint will provide some insights for directors and others into the answers to these questions in the context of the SEC’s mandated disclosure of the ratio of CEO to median employee pay. Read More
John D. England and Peter S. England
To qualify for the performance-based compensation exception under Section 162(m), payment of the compensation must meet several requirements, including that performance goals must be set by the corporation’s “compensation committee.” The Code defines “compensation committee” as the committee of independent directors that has the authority to establish and administer the applicable performance goals, and certify that the performance goals are met. 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.