Board independence is an increasing focal point for investors, proxy advisors and corporate issuers, especially now as companies go through their annual shareholder meetings. With that in mind, we thought this article from the Financial Times relevant for our community as it highlights a recent study on director independence and its impact on governance.
Tag: director pay
An article was recently published regarding the CEO of a not for profit, Health Care and Rehabilitation Services. Judith Hayward, the CEO, is reported to have received a $650,000 retirement package after 19 years of service. The author highlights the problematic excessive payment and the anger of some company employees. In the author’s words, “this… Read more »
“When an organization fails because of executive malfeasance, it generates a lot of attention. But such situations are actually relatively rare. It’s much more common, though less talked about, for organizations to fail because of ungoverned incompetence. That is, someone does the wrong thing while trying to do the right thing, and organizational systems fail… Read more »
“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 »
“Board director compensation levels for middle market companies kept pace with the economy between 2014 and 2015, according to a new report from BDO USA, LLP, a leading accounting and consulting organization. Following years of solid increases, compensation remained relatively level at $153,389. The report, The BDO 600: 2016 Survey of Board Compensation Practices of… Read more »
“Over the past two years, a growing number of U.S. banks has capped their directors’ earnings, but the ceilings are so high that they primarily serve to fend off potential shareholder litigation rather than control the pace of pay increases. Most of the caps are typically 2-3 times what directors now get paid, according to… Read more »
Dear Friends, It is hard to believe spring is here and the summer heat will soon be upon us. So far, 2016 is turning out to be a very interesting year for director pay and ISS. When a first-class organization like Schlumberger gets a “no” vote on its proxy from ISS, it’s a wake-up call… Read more »