Category: Rewards

APRIL L-BLAST: Compensation Media Bias | How Public Outrage Affects CEO Pay | The “Buy Side” View on CEO Pay

On the blog today, we feature this April’s L-Blast, featuring current topics in executive compensation and corporate governance. The first article is an L&A original regarding media bias when it comes to compensation. We at L&A point out the relative comparisons that deal with these issues daily and offer a few points for perspective. The second… 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 »

How Boards Should Evaluate Their Own Performance

“The New York Stock Exchange requires that the boards of all publicly traded corporations conduct a self-evaluation at least annually to determine whether they are functioning effectively. The purpose of the exercise is to ensure that boards are staffed and led appropriately, that board members are effective in fulfilling their obligations, and that reliable processes are… Read more »

Companies Are Increasingly Using Non-Financial Goals For Executive Compensation

“Executive compensation has always been a difficult topic and as executive wages have grown rapidly since the financial crisis, while the wages of the average worker have stagnated, the debate around executive compensation has only become fiercer. Companies have responded to the growing chorus of criticism by allocating a higher portion of executive compensation to… 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 »

EXECUTIVE COMPENSATION: IRS UPDATES GOLDEN PARACHUTE PAYMENT AUDIT TIPS

“Companies and individuals tapped to undergo Internal Revenue Service examinations of golden parachute payments should review the updated Golden Parachute Payments Audit Technique Guide (2017 ATG) issued by the IRS on Jan. 20. Golden parachutes are arrangements that provide executives or key employees with significant financial compensation in the event of a change in ownership… Read more »

Board of Directors Pay: Rewarding for Expertise

“Board of Directors pay continues its upward trend according to a study published by Total Compensation Solutions (TCS). The Board compensation report shows increases of approximately 7 to 8 percent from last year for annual retainers for the Chairman, and Regular Board Members and an increase of 14.4% for Lead Director annual retainers.” Read the… Read more »

Incentive Plan Payouts Prove Effective Pay for Performance

Companies, shareholders and boards of directors want to ensure alignment of pay and performance to justify the often-high accompanying price tag of executive compensation. To provide context on the correlations between awarded, realizable and actual pay earned under performance-based awards, companies will often detail this information in proxy statements to keep shareholders up to date… Read more »