Tag Archives: Ira Kay

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

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

Five Key Issues for Comp Committees in 2018

Ira Kay is quoted in today’s issue of Agenda. The article can be read by clicking on the link. Agenda Week: “Five Key Issues for Comp Committees in 2018” A subscription to Agenda is required. January 8, 2018

Anticipating Extra Cash From Tax Reform? Experts Debate How to Spend It

Ira Kay is quoted in today’s issue of Agenda. The article can be read by clicking on the link. Agenda Week: “Anticipating Extra Cash From Tax Reform? Experts Debate How to Spend It” October 20, 2017

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

Ethical Boardroom | Activist shareholders and executive compensation

Patrick Haggerty and Ira Kay authored an article in this quarter’s Ethical Boardroom. The article can be read by clicking on the link. https://ethicalboardroom.com/activist-shareholders-and-executive-compensation/ September 28, 2017

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 Summit

June 12-14, 2017 – Chicago, Illinois Swissotel 323 East Upper Wacker Drive Chicago, IL 60601 Ira Kay is a speaker on a panel the first day of the event. Point Counterpoint: Debating Compensation Practices A set of compensation consultants and … Continue reading

Resisting Homogenization of the Executive Pay Program – Update Motivating the executive team while satisfying shareholders and achieving successful Say on Pay votes

In today’s environment, with annual Say on Pay (SOP) votes, intense external scrutiny and the need to strongly align pay with performance, it is increasingly important for companies to be confident in their executive pay program. The foundation of a sound executive pay program is built on the company’s business strategy and talent needs, which, collectively, must be achieved in order to create shareholder value. Continue reading

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