Monthly Archives: May 2017

The CEO Pay Ratio Beyond Dodd Frank: Live and Local

Spring is in the air, and executive compensation consultants are busy reading a cascade of public filings and proxy advisor reports as we analyze and are asked to predict trends in executive pay in 2017 and beyond. One of the most common questions in executive compensation this year concerns what will become of the Dodd-Frank mandated CEO pay ratio set to be disclosed publicly for most companies beginning with proxies filed in 2018 – if not delayed or overturned beforehand. Earlier this year, acting Securities and Exchange Commission (SEC) Chair Michael Piwowar took the unusual step of requesting additional comments on the cost and burden of complying with the already approved CEO pay ratio rule, which would require companies to disclose the ratio of CEO pay to that of the median employee. Continue reading

Assessing ISS’ Newly Selected GAAP Financial Metrics for CEO P4P Alignment: How Can Companies Respond?

Say on Pay (SOP) and shareholder advisor vote recommendations have caused a dramatic increase in the use of relative total shareholder return (TSR) as a long-term incentive (LTI) plan performance metric. Continue reading

Equilar C-Suite-Spin Control

May 15, 2017 – In the latest version of Equilar’s C-Suite magazine, Christine Skizas, partner in our Chicago office, is a contributor to the Spin Control article. Please click here to be redirected to the article. To receive the full … Continue reading

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Pay ratio will be hot political issue next year

May 14, 2017 – The St. Louis Post dispatch recently quoted Eric Marquardt our St. Louis partner regarding executive pay packages. Click here to be redirected to the article.

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Potential Regulatory Relief – Financial CHOICE Act 2.0

The CHOICE Act is designed to rewrite many of the rules and provisions contained in the Dodd-Frank Wall Street Reform and Consumer Protect Act (“Dodd-Frank”). The proposed legislation was passed on a party-line vote of 34-26 and has advanced to the full House for a vote at some future date. The legislation is expected to pass the House due to its Republican majority. Continue reading

Over the Long Term, Companies with Problematic Pay Practices Generally Perform Worse than Companies that Avoid Problematic Pay Practices

Since advisory Say on Pay (“SOP”) votes became effective in 2011, ISS and Glass Lewis have exerted significant influence over the vote outcomes for these proposals. These advisors use quantitative tests to assess CEO Pay for Performance (“P4P”) alignment and supplement those quantitative assessments with a qualitative review of pay practices/program design. Continue reading

What You Are Likely to Hear in the Board Room

May 9, 2017 – The Havard Law School Forum on Corporate Governance and Financial Regulation re-published our most recent Viewpoint “What You Are Likely to Hear in the Board Room”. Click here to be redirected to their column.

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