Tag: incentives

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 »

Four Houston Oil Companies Lifted CEO Pay in 2016

Longnecker & Associates’ President, Chris Crawford, was quoted in the Houston Chronicle’s recent article entitled, Four Houston Oil Companies Lifed CEO Pay in 2016. He states, “2017 Proxy statements are being filed, disclosing executive compensation for the last year. Trends are emerging that it was a good year for energy companies bouncing back, and pay… Read more »

How to Better Communicate Peer Group Selection & Board Composition

With the 2017 proxy season upon us, this article from Boardroom Resources discusses best practices for communicating two critical components within the CD&A: peer group selection and board composition. While there’s no one-size-fits-all approach for either disclosure, this article presents some relevant alternatives for company leaders to consider.  We believe it is important that boards… 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 »

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 »

Rewarding Executives for Successful Bank M&A

“Mergers and acquisitions (M&A) can create significant value for shareholders. Accordingly, bank executives should be rewarded when completing and integrating successful transactions. However, in today’s environment of heightened executive pay scrutiny, some approaches to providing additional compensation for M&A can result in criticism from shareholders and advisory firms such as Institutional Shareholder Services and Glass… Read more »