Yearly Archives: 2015

Large-Scale Buybacks Don’t Hurt TSR: Research

A study recently performed by Ira Kay, Blaine Martin and Chris Brindi of Pay Governance shows similar TSR for high- and low-buyback companies over five years. Click here to be re-directed to Agenda to read the full article or to … Continue reading

Trends in S&P 500 CEO Compensation

Executive pay continues to be a hotly debated topic in the boardroom among investors and proxy advisors, and it routinely makes headlines in the media. As the U.S. was in the heart of the financial crisis in 2008 – 2009, CEO total direct compensation (TDC = base salary + actual bonus paid + grant value of long-term incentives) dropped for two consecutive years. Continue reading

FASB Eliminates “Extraordinary Items” Concept — Implications for Incentive Compensation Plans

The Financial Accounting Standards Board (FASB) has elected to eliminate the concept of extraordinary items under Generally Accepted Accounting Rules (GAAP), effective with fiscal years beginning after December 15, 2015. Continue reading

Strengthening Executive Pay and Performance Alignment by Using a 162(m) “Umbrella” Plan Design for Performance Shares

Performance-based long-term incentive (LTI) awards—typically performance shares or stock units (PSUs)—are a large component of annual LTI awards for executives at most companies . Compensation committees continue to wrestle with the various design considerations associated with PSUs. Continue reading

How S&P 1500 Companies Choose Peers to Benchmark Pay

Jack Marsteller, Partner in our Los Angeles office, was recently quoted in an press release by Equilar. “In general, the visibility of competitive pay standards makes it difficult to set pay below peer median for long even if there are … Continue reading

SEC Adopts Final Rules Regarding CEO Pay Ratio Disclosure

The Securities and Exchange Commission (“SEC”) staff has had a busy summer. Following the release of proposed rules and regulations regarding the CEO Pay for Performance and Clawback provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”), the SEC on August 5, 2015 proposed final rules and regulations regarding the CEO pay ratio disclosure. The CEO pay ratio disclosure fulfills a further mandate of the Dodd-Frank legislation. Continue reading

ISS Releases 2016 Annual Policy Survey

On August 4, 2015, Institutional Shareholder Services (ISS) released its annual policy survey for the 2016 proxy voting season. The survey encompasses its global proxy voting policies across all potential topic areas. Continue reading

Does the SEC’s New “Compensation Actually Paid” Help Shareholders?

On April 29, 2015, the SEC released proposed rules on public company pay-for-performance disclosure mandated under the Dodd-Frank Act. Pay Governance has analyzed the proposed rules and the implications for our clients’ proxy disclosures and pay-for-performance explanations to investors. To … Continue reading

Incentivising Innovation

The Ethical Boardroom recently printed an article written by Pat Haggerty, Partner in our New York Office. To be redirected to the Ethical Boardroom Magazine, you may click here. Please feel free to comment by clicking here.

Press Release – June 2, 2015

Shareholders Gain Ground On Corporate Social Responsibility Proposals A new report from Pay Governance finds that shareholder proposals seeking to influence corporate policies on environmental or social issues at U.S. public companies have increased significantly in the past five years. … Continue reading

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