Category: Say on Pay

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 »

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 »

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 »

Reconsideration of Pay Ratio Rule Implementation

“The Commission adopted the pay ratio disclosure rule in August 2015 to implement Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rule requires a public company to disclose the ratio of the median of the annual total compensation of all employees to the annual total compensation of the chief executive… Read more »

Say on Pay & the Need for Better Shareholder Engagement

“2017 marks a milestone year in terms of Say on Pay in the United States, as the first six-year ‘say on frequency’ vote goes to shareholders. This means that on top of a Say on Pay vote, U.S. companies will also be holding a Say on Frequency vote, providing shareholders with a chance to determine… 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 »

Our First L-Blast Newsletter of the New Year!

Our L-Blast is our monthly newsletter discussing hot topics in executive compensation and corporate governance. After an introduction from our CEO, Brent Longnecker, the topics for this month’s LBlast are: Deal Lawyer SEC Chair Could Mean Changes for Executive Compensation | ‘Tis the Season for W-2 Scams | New Congress Begins with Total Rewards Issues… 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 »

Are Top Investors Listening to Proxy Advisors on Pay?

“Large investors are not following the recommendations on executive compensation set out by Proxy Voting Advisers (”PVA”), a study by data company Proxy Insight has found. Proxy Insight analyzed voting on Advisory Say on Pay (”SoP”) resolutions in the US and UK in 2015 and 2016 for 10 of the largest institutional investors and compared… Read more »