Monthly Archives: October 2012

Evaluating the ISS Test of CEO Pay for Performance for Say-on-Pay Votes

Pay/performance alignment will continue to be the paramount concern of compensation committees designing executive pay packages and of shareholders who are asked to vote on them. Continue reading

Posted in Uncategorized | Tagged | Comments Off on Evaluating the ISS Test of CEO Pay for Performance for Say-on-Pay Votes

Compensation Risk Assessments

If you have had occasion to read the Compensation Discussion & Analysis section of a proxy statement recently, you likely came across a statement quite similar to this one:  Continue reading

Federal Reserve Issues Report on Incentive Compensation Practices

In 2010, the federal banking agencies1 adopted final guidance originally proposed by the Federal Reserve on incentive compensation design (“Sound Incentive Compensation Policies”).  This guidance is based upon a principles-based approach governing banking organizations’ incentive compensation arrangements and related processes, … Continue reading

2011 CEO Pay Studies: The Devil is in the Details

The 2011 proxy season was marked by considerable interest in CEO pay due to the heightened scrutiny of executive compensation and Say-on-Pay (SOP) advisory votes. As has been the practice in recent years, major media sources and compensation advisors have released studies of CEO pay in 2010 based on analyses of proxy statements of prominent Fortune 500 companies. As these studies’ data and methodologies vary, their findings tend to be inconsistent. Given the stock market turbulence in recent weeks, and in consideration of the highly critical environment regarding executive pay in particular, we believe that such studies can draw strong reactions as certain media organizations use findings to emphasize their favorite themes. Continue reading

Executive Compensation Governance

In today’s Say-on-Pay environment, it is critical for compensation committees to establish a solid corporate governance foundation for designing, implementing and administering executive compensation programs. Ultimately, however, a committee’s success will not be assessed by this foundation, but by the soundness of compensation programs built upon it. This structural integrity is measured by outcomes: the degree of alignment between total realizable executive pay* and corporate financial and shareholder returns on the one hand and the motivation and retention of the executive team on the other. Continue reading

Posted in Authors | Tagged | Comments Off on Executive Compensation Governance

Should Superstar Athletes Be Paid Like CEO’s

Critics say that Corporate CEOs should be paid like professional athletes because sports is a more efficient labor market and athletes are paid fairly because they are compensated for their own talent. We disagree! We think professional athletes should be … Continue reading

Download a free copy of our new eBook!
Simply provide your e-mail address and a link will automatically be sent to you.
Request a paperback version of the book. Input your address in the message field.