Daily Archives: February 6, 2013

Compensation Committee Responsibilities and Best Practices-Chapter 6 Summary

The responsibilities associated with serving on the compensation committee of a company’s board have increased significantly in recent years with the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and mandated “say on pay,” governance reform and enhancements, and increased shareholder activism. Continue reading

Eliminating Severance Plans as a Shareholder Irritant-Chapter 10 Summary

Pay for performance is changing the severance landscape. Continue reading

Balancing Operating/Financial Metrics-Chapter 11 Summary

One of the key functions of an incentive plan is to align participants with the interests of shareholders; such a pay objective has become especially relevant in the post-Say on Pay world’s focus on good compensation governance. Continue reading

CEOs are Paid for Performance-Chapter 2 Summary

Is CEO pay aligned with performance? Continue reading

Evaluating the ISS Test of CEO Pay for Performance-Chapter 3 Summary

The single most powerful determinant of how positive or negative the outcomes of Say on Pay shareholder votes will be is the overall alignment of CEO pay to company performance. Continue reading

Debunking Myths of Easy Goals-Chapter 12 Summary

The majority of the general public and mainstream media believe that CEOs control their boards allowing them to reap excessive pay packages that are not aligned with actual company performance. Continue reading

Do Companies with Higher Profit Margins pay their CEOs More-Chapter 14 Summary

It is well known that larger companies, in terms of revenues and market capitalization, provide higher CEO pay opportunity than smaller companies. Continue reading

Compensation Risk Assessments-Chapter 13 Summary

An appropriate level of risk is essential for any business to survive and produce acceptable risk-adjusted returns to investors. Continue reading

Executive Compensation Governance-Chapter 8 Summary

The need for appropriate corporate governance practices and an objective approach to managing pay programs is greater than ever. Continue reading

Does Executive Pay Only Rise via Ratchet / LakeWobegon Effects?-Chapter 7 Summary

The ratchet effect theory of executive pay cannot exist in isolation. Continue reading

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