Category: Awards

Our New Energy Incentive Compensation Survey Launches August 1st!

Our survey team at L&A has designed an incentive compensation survey for the Oil & Gas industry to provide competitive market practices in both annual and long-term incentive compensation plan designs. Specifically, the survey will report on incentive plan eligibility, performance metrics, vehicle mix, vesting periods, vesting schedules, annual incentive targets, and long-term incentive targets…. Read more »

Why CEOs Aren’t Overpaid

While CEO pay has been a hot topic for many years, it has come back into the spotlight after the House of Representatives recently voted to repeal the Dodd-Frank legislation. Critics are complaining that transparency is necessary to lower CEO pay, but we are sharing this Fortune article that shows the majority of CEOs really… Read more »

Dangling the Carrot: How Banks Can Approach Incentive Compensation

Carefully drafted incentive compensation plans can improve executive loyalty. It’s a good idea to make sure your executives are protected, and there are a lot of variables to consider in putting together incentive compensation plans. This article discusses options like cash or equity, appropriate triggers, and other “do’s and don’ts” to consider with drafting this type… Read more »

Incentive Plan Goal Setting

One of the biggest issues facing boards today is setting goals for incentive plans. How do companies find that balance between motivating executives, aligning with the company’s strategic goals, and satisfying shareholders? This article by ClearBridge analyzed the goals for annual incentives & long-term incentives set by 100 S&P 500 companies to help answer this… Read more »

Return on Capital Grows in Popularity in LTI Plans

We came across a recent report that we thought would be interesting to our readers. With the debate growing on whether or not TSR measures are the best approach for performance-based long-term incentives, this study highlights and discusses some other metric alternatives and their real-time market practice. Check out Return on Capital Grows in Popularity in LTI… Read more »

Bonus Targets Can Be Real Easy for Bosses in a Volatile Industry

Our Chairman & CEO, Brent Longnecker, was recently quoted in this article, Bonus Targets Can Be Real Easy for Bosses in a Volatile Industry, that uses the example of US Steel’s bonus payouts to discuss easy compensation targets that are set for executives – a long-time complaint of shareholders. The economy is constantly changing, so it… Read more »

L&A’s Thoughts on “Excessive CEO Pay for Dumb Luck”

“Interesting article. However, a few additional points to complete the compensation picture. One, there is no reference to actual pay received as tied to stock price performance. Rather, this is a reference to the summary compensation table. Added, the summary compensation table is hodge-podge of GAAP and “non GAAP” reporting as well. Bonuses based off… Read more »

ORIGINAL L&A ARTICLE: An Interview with our CEO

Below is an excerpt from our latest monthly newsletter, the LBlast. Please subscribe via our website. In a recent National Association of Corporate Directors panel, Longnecker & Associates’ CEO, Brent Longnecker, was asked a series of questions related to current hot button compensation topics. Through his extensive work as both a consultant, executive and director,… Read more »

2017 Agenda: Priorities for Boards, Audit Committees and Private Companies

“Political swings, global volatility, technology innovations and investor expectations will require deeper board engagement. Drawing on interactions with corporate directors and business leaders as well as insights from its research, the KPMG Board Leadership Center has published three reports highlighting critical issues for corporate board members, audit committee members and private company directors as they… Read more »

Golden Leash Rule, Say-on-Pay, Form 10-K Summaries: Proxy Season Guide to 2017

“As another year comes to a close, it is time for public companies to become acquainted with the securities law and business developments of the past year to position themselves for success in 2017. Below is a summary of current and anticipated changes that may impact reporting requirements and disclosure regulations for the upcoming 2017… Read more »