Say on Pay Update, Annual Audit of Executive Compensation, & Watchdog Challenged Over Benchmarks | July 2012

  2012 Say On Pay Update by Jonathan Covington, Chris Crawford, & Brent Longnecker of Longnecker & Associates The Dodd-Frank Act has given shareholders the right to approve or reject the compensation paid to the top executives of a company, a provision now known as “Say-on-Pay.” Last year brought 40 (officially 44, with four questionable… Read more »


Does Executive Compensation Need an Annual Audit?

In a recent opinion piece on Forbes, Professor Edward E. Lawler III of USC's Marshall School of Business, and founder of the Center for Effective Organizations, proposed a very interesting concept.  Addressing the issue of Say-on-Pay and executive payouts, Prof. Lawler suggests that perhaps every year there should be an annual audit of executive compensation… Read more »


June 2012 | Say on Pay Update, Linking Sustainability Performance to Executive Compensation, & Best Practices for Not-for-Profit Boards

The following are some recent Executive Compensation headlines: – JP Morgan Said to Consider Clawing Back Bonuses After Loss; – JP Morgan Says 91.5% of Shareholders Approve Pay Proposal; – Real Estate Compensation Rises Along With Performance; and – Frank Introduces a Bill to Prohibit Insurance Policies Against Insuring for Clawbacks. And so it continues!… Read more »


Houston Talent Market Could Get Even Tighter

As we know, the talent market in Houston remains in a hyper-competitive state. Interestingly enough, the Houston talent market may get even more competitive in the coming years, albeit from an unlikely source. Apparently Canada has indentified Houston as its #1 source of talent to fill both energy and healthcare related jobs in the coming… Read more »


Young Consultants: How to Work the Generation Gap

As the baby boomer workforce continues to age, there is a growing gap in generations of strong technical talent and tenured, experienced workers with the knowledge to keep companies headed in the right direction. At Longnecker & Associates, we believe in leveraging the talents of the younger generation to help close the gap between the… Read more »


April 2012 | Proxy Advisory Firms’ Influence on Comp, Deductibility of Bonus Programs, JOBs Act, & 162(m) Compliance

This year's proxy season is just about all wrapped up. We at L&A continue to talk with the SEC, RiskMetrics, and other shareholder groups and institutions on behalf of clients, and the results have been mixed but productive. We are continuing to monitor this for you, as well as some of the hyped-up scrutiny private… Read more »


External Hires are Expensive

  The Wall Street Journal article "Is It Better to Promote From Within?" cites a recent study conducted by Matthew Bidwell, an assistant professor at the University of Pennsylvania's Wharton School, which "found that external hires get paid 18 percent to 20 percent more than internal employees do for the same job." Mr. Bidwell's study… Read more »


Early Filers Showing CEO Compensation Rises in Check

Early filiers for the 2012 proxy season, (displaying 2011 compensation) indicate that CEO compensation stayed in check despite large profits and return to shareholders for 2011.  This is likely a result of hyper-scrutiny post Say on Pay in 2011 for these large companies which are filing early.  Here is a link to the USA Today… Read more »


Annual Incentive Payments and IRS Revenue Ruling 2011-29

  The IRS issued Revenue Ruling 2011-29 yesterday which deals with the deductibility of annual incentives, or the annual bonus. The ruling will allow employers using an accrual method of accounting to take a deduction in the current year for bonuses payable in the following year.  Michael B. Melbinger of Winston & Strawn LLP, wrote a… Read more »


2012 State of Executive Compensation | Special Edition

Every now and then, L&A feels compelled to send out what we term a Special Edition L-Blast. This is one of those times. There is no denying that executive compensation is under fire more than ever before. As a result, it is important that we continue to keep our constituents as up-to-date as possible. This… Read more »