Yearly Archives: 2018

Share Buybacks and Executive Compensation – A New SEC Commissioner Offers a Perspective

Robert J. Jackson, Jr. is a new member of the United States Securities and Exchange Commission (SEC), having been appointed by President Trump in January 2018. Commissioner Jackson previously served as a New York University School of Law professor, where he taught in the areas of corporate law, corporate governance, corporate finance, and executive compensation. Continue reading

The CEO Pay Ratio: How Should Compensation Committees Evaluate Their Ratios? Measuring the Impact of “Median Employee Pay”

In our study of 389 S&P 500 companies, the median CEO pay level is $12.1 million, consistent with many other studies. The median of the “median employee pay” level, as disclosed in the ratio section of the proxies, is $70,129. This latter value has surprised many observers, as it is much higher than expected and — more importantly — 39% higher than the average U.S. private sector salary of $50,620 (142 million employees). This employee pay level was previously unknown. Continue reading

Companies used to rarely reveal what they pay rank and file; now they must

May 6, 2018 – The St. Louis Post dispatch recently quoted Eric Marquardt our St. Louis partner regarding executive pay. Click here to be redirected to the article.

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Optimizing the Retention Impact of the Executive Pay Program

Our viewpoint “Optimizing the Retention Impact of the Executive Pay Program” by John Sinkular, Joshua Bright, and Phil Johnson will be re-posted in the May issue of The Corporate Advisor. To be redirected to the Corporate Governance Advisor website to … Continue reading

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Aubrey Bout quoted in Directors and Boards Magazine

The upcoming Directors and Boards issue will feature an article where Managing Partner, Aubrey Bout is quoted. To be redirected to the Directors and Boards website to request a copy of the magazine, click here. April 26, 2018

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CEO Pay As Governed by Compensation Committees: The Model Works!

Last year, two articles in the Wall Street Journal and Harvard Business Review criticized the overall CEO pay model at U.S. companies. The authors of both articles, Robert Pozen and S. P. Kothari, link their criticisms to shortfalls in executive compensation governance (e.g., poor disclosure, misleading metrics, and selecting inappropriate peer groups) that have been allowed and/or encouraged by Board Compensation Committees. In this article, we address these critiques. Continue reading

Comp Metrics Get Realigned with Strategy

Ira Kay is quoted in today’s issue of Agenda. The article can be read by clicking on the link. Agenda Week: “Comp Metrics Get Realigned with Strategy” A subscription to Agenda is required. March 26, 2018

The Elimination of the Performance-Based Requirement Under Section 162(m):

Any changes to long-standing executive pay rules-regardless of whether they concern taxes, accounting, or regulations-raise questions and uncertainty about whether they will lead to wholesale changes in how executive pay is delivered. Continue reading

The Advisors Blog-Long-Term Pay-For-Performance Alignment: A 10-Year Review of CEO PSU Plan Payout Histories

Our viewpoint “Long-Term Pay-For-Performance Alignment: A 10-Year Review of CEO PSU Plan Payout Histories” was re-posted in The Advisors’ Blog. The article can be read by clicking on the link. https://www.compensationstandards.com/member/Blogs/consultant/2018/02/a-10-year-review-of-ceo-psu-plan-payout-histories.html February 28, 2018

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U.K. Companies Must Comply With Gender Pay Gap Reporting

While U.S. companies are addressing the new requirement to report CEO pay ratio statistics to shareholders, U.K. companies are now required to report statistics on the gender pay gap. Such reporting is mandated for no later than April 4, 2018, and the reporting must occur on the company’s public-facing website and submitted directly to the government using its dedicated online reporting service. Such reporting is in direct response to the U.K. Equality Act 2010 (Gender Pay Gap Information) Regulations 2017. Continue reading

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