Tag Archives: CEO

Companies That Perform Best Don’t Pay CEOs the Most

Ira Kay is quoted in this article recently published in the Wall Street Journal. The article can be read by clicking on the link. https://www.wsj.com/articles/companies-that-perform-best-dont-pay-ceos-the-most-1507194000?shareToken=st19c79a1da3d84bf1a07dd2c56c0c0f86&reflink=article_email_share October 5, 2017

S&P 500 CEO Compensation Increase Trends

CEO pay continues to be a widely debated topic in the media, in the boardroom, and among investors and proxy advisors. As the U.S. was in the heart of the 2008-2009 financial crisis, CEO total direct compensation (TDC; base salary + actual bonus paid + value of long-term incentives [LTI]) dropped for 2 consecutive years. Continue reading

SEC Issues More Guidance on CEO Pay Ratio Rule

On September 21, 2017, the Securities and Exchange Commission (SEC) released additional guidance on the CEO pay ratio disclosure requirement. While many had hoped for some form of delay or outright reprieve from the required disclosure, it is now evident that the SEC expects companies to fully comply with the reporting requirement in early 2018 when the rule becomes effective.
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Long-Term Pay-For-Performance Alignment: A 10-Year Review of CEO PSU Plan Payout Histories

With the introduction of say-on-pay (SOP) in 2011 and the increased clout of proxy advisory firms on executive compensation program designs, the performance share unit (PSU) has become a common feature of executive long-term incentive (LTI) programs among U.S. public companies. Continue reading

The CEO Pay Ratio in Context: Framing the Narrative

If current legislation and SEC rulemaking stand, one big story in public company executive compensation during the 2018 proxy season will be the disclosure of the “CEO Pay Ratio.” Beginning for reporting periods starting on or after January 1, 2017 (spring 2018 proxy filings), companies will be required to disclose the median of employee pay excluding the CEO, CEO pay, and the ratio between the two. Continue reading

Is a “target range” right for your incentive plan?

As shareholders of U.S. public companies demand more accountability for performance, Boards are under increased pressure to continue to strengthen the P4P linkage of their incentive compensation plans. In a 2013 survey of Compensation Committee members co-sponsored by the NYSE, Conference Board, and Pay Governance, the top 3 “challenges” that Committees stated they were facing involved incentive pay and performance goal setting. Continue reading

SEC Releases Proposed Pay for Performance Disclosure Rules

In this edition of Viewpoint, Pay Governance will discuss the proposed rules and the next steps companies should consider regarding pay for performance disclosure rules. The SEC intends that the pay for performance comparison will supplement the CEO pay ratio in providing shareholders with information to better assess executive pay for purposes of the shareholder advisory Say on Pay vote. Continue reading

Transitioning from a Pre-IPO to Post-IPO Company

Given that the IPO market has heated up in the last few years – 2013 brought us 222 IPO pricings in the U.S., up almost 80% from 2012(1) – we thought it worthwhile to look at pre-IPO equity practices and the implications for companies after the initial offering. Continue reading

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