Short-Term Incentive Pay Criteria Are Shifting

“The criteria for earning short-term incentive (STI) compensation appear to have entered a state of flux, judging by new research from the CFO Alliance. In particular, some companies are putting non-financial metrics, like customer or employee satisfaction, into the mix. But far more companies should be doing so, according to Ernie Humphrey, a former CFO… Read more »

December 2016 L Blast: Advisory Shareholder Services Discretionary Reviews | Steve Novick’s CEO tax wins close vote, putting Portland on world map | U.K. Plans to Extend Top-Pay Rules to Closely Held Companies

Dear All, As we begin to close out 2016, we at L&A would like to thank you for your continued support over the last year. We strive to bring you content that is relevant and industry specific to better your businesses. We hope each of you have a restful holiday season with family and friends… Read more »

ISS U.S. Frequently Asked Questions are Published

ISS has published the U.S. Frequently Asked Questions for Equity Plan Compensation, Executive Compensation, Pay-for-Performance Mechanics, and U.S. Peer Selection (available here). In addition, an updated PFP white paper to reflect the new financial performance alignment test was also published. This document, Setting the Bar for Equity-Based Compensation: A summary of the ISS Methodology for… Read more »

The World’s Best-Value CEOs

“Are chief executive officers worth their pay? Apple CEO Tim Cook’s $10 million in compensation isn’t chump change, but it’s a bargain when you compare that to the company’s massive average economic profit over the last three years. Other companies pay their CEOs much more, but seem to get a lot less for it. Bloomberg… Read more »

The Board’s Roadmap to a Successful CEO Search

“Veteran director Sara Hays shares insights from her board’s successful CEO search. As chair of the board’s CEO search committee, what best practices can she offer? The search and selection of a CEO is among the board’s most important foundational duties. While sometimes boards are rushed to find a successor (due to an unexpected incident),… Read more »

3 Questions (Answered) at Equilar’s Compensation Committee Forum

“Equilar’s Compensation Committee Forum covered topics from regulatory updates to peer group selection and Say on Pay. The realm of executive and director pay is a tumultuous one. Whether preparing for the impending CEO Pay Ratio or anticipating the regulatory changes ahead, it can be challenging (and time-consuming) for boards and compensation committees to stay… Read more »

More Guidance on Section 409A

“Last month, the IRS provided helpful guidance under Code Section 409A with the release of its Chief Counsel Advice 201645012 (the CCA). The CCA is noteworthy because the IRS agreed that a 25% increase qualified as a materially greater amount, and thus deferred salary was subject to a substantial risk of forfeiture. The CCA may… Read more »

Middle Market CEO & CFO Pay Increases Show Momentum in BDO Study

2015 middle market executive compensation trends foreshadowed momentum companies are seeing in 2016. In Q2, the National Center for the Middle Market reported 7.2 percent revenue growth over the previous year, and while companies entered the year with some caution, 2015 pay reflected improving performance. According to the BDO 600: 2016 Survey of CEO and… Read more »

The Future of Compensation & Corporate Governance Amid a Trump Presidency

One thing is for certain, the results of the election created a myriad of questions regarding the future of American politics. Less certain, though, is the level of impact the results will have on the futures of various executive compensation and corporate governance policies that have been at the forefront of discussions since outgoing President… Read more »

Effective Executive Incentive Programs (WorldatWork Video)

Sandra Pace, Managing Partner, Steven Hall & Partners, and Michael Sherry, CECP, Consultant, Steven Hall & Partners, discuss why organizations may be struggling to maintain their incentive programs, emerging considerations, pitfalls, and best practices. View the video here.