“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 »
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 »
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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 »
“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 »
“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 »
“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 »
“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 »
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 »
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.