“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 »
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“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 »
“Overseeing a company is no small task. Disruptive technologies are changing corporate business models, geopolitical turmoil is impacting supply chains and investment opportunities, and increased regulatory complexity is affecting innovation. Institutional investors and shareholder activists are also playing a more powerful role shaping corporate governance. But no one more than board directors have to keep… Read more »
“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 »
“Late last month, the SEC issued (and this month it posted) a No-Action Letter rejecting Apple’s attempt to exclude a shareholder proposal on executive compensation. The proposal was an odd one, with a quirky supporting statement, apparently submitted by a retail investors on his own. Resolved: shareholders recommend that Apple Inc. engage multiple outside independent experts… Read more »
Check out our latest L&A original article (L&A_LBlast_Article1_082616_HR) “Does a Higher Governance Score Improve Shareholder Value?”, that was featured in our August L-Blast newsletter. It was written by Ian Keas, Chris Crawford, and Brent Longnecker. If you’d like to sign up to receive our monthly newsletter containing important news in executive compensation and corporate governance, please… Read more »
For companies subject to ISS’ United States policy, there are several changes to be aware of: Management Proposals • Director overboarding: o Subject to the one-year transition period described below, ISS will issue a negative vote recommendation on directors who are not public company CEOs and who sit on more than five public company boards…. Read more »