Executive Compensation: The Role of Public Company Shareholders

Barbara Novick of BlackRock, Inc., one of the largest and most powerful institutional investors in the world, wrote about CEO pay and the role of shareholders. Of particular note is her assessment of proxy advisors, making it clear that proxy advisor clients appreciate the analysis and recommendations but have their own views. Proxy advisors are…

Bill Winters has undermined good corporate governance | Financial Times

The attack on shareholders by Bill Winters, chief executive of Standard Chartered, for opposing remuneration at the recent shareholder meeting was as unwarranted as it was surprising.While it could easily be dismissed as an individual’s ego bruised by the concerted opposition of nearly 40 per cent of proxies cast against his pay, the wider issues…

The Test of Time: Adapting to a New Era of Executive Compensation

In 2018, CalPERS voted against 45.4% of the S&P 500 on Say on Pay, according to corporate governance nonprofit As You Sow. These results are drastically higher than in previous years, as its five-year average for opposing Say on Pay votes was 16%. According to Simiso Nzima, Investment Director of Global Equity at CalPERS, among…

UAW Proposal on Clawbacks Endorsed by Mylan Shareholders 

In a non-voting discussion item, shareholders supported a proposal by the United Auto Workers Retiree Medical Benefits Trust for Mylan to strengthen its clawback policy for senior executive incentive pay.The executive compensation vote is called Say on Pay. In its proxy statement, Mylan said,  “Although advisory and not binding, the Compensation Committee and the board…

Opinion | C.E.O. Pay, America’s Economic ‘Miracle’ – The New York Times

In an op-ed in the New York Times, Bill Saporito writes: There are some good reasons C.E.O. pay has risen. Large companies keep getting bigger, and in some ways more complex. Health care, pharmaceutical and media companies have been making sizable acquisitions as these industries continue to consolidate. Disney, for instance, just bought a large…

Big Companies Pay CEOs for Good Performance—and Bad – WSJ

The mechanics of chief-executive pay have grown ever more complex, but the rules remain simple: Strong performers get a raise. So do most of the rest. For the fourth year straight, the biggest U.S. companies set CEO pay records in 2018, a Wall Street Journal analysis found, even as a majority delivered negative stock price…

VEA Vice Chair Nell Minow on CEO Pay: Michael Lewis Podcast

We highly recommend Against the Rules, the superb new podcast series from Michael Lewis (author of The Big Short, The Fifth Risk, Liar’s Poker, and much more) that examines the decline of “refs,” the independent arbiter formerly relied on but now losing credibility, from basketball to art to, yes CEO pay.  VEA Vice Chair Nell…