General Electric last week disclosed that it had cut stock awards planned for Chief Executive Officer Larry Culp, reducing the CEO’s 2022 pay by $14 million. In its annual proxy statement, GE said the company failed to hit certain performance targets that were required for Culp to receive his full payout. His total compensation for…
Category: ceo pay
What Do the New CEO Disclosure Rules Really Reveal? Geoff Colvin at Fortune
Shareholders may be rejoicing this spring to find that, for the first time, proxy statements will report a new, SEC-mandated measure of CEO pay: “compensation actually paid” for the past three years. CEOs may be bracing for headlines announcing never-before-seen numbers. Alas for everyone, these numbers are not what they seem. Proxy statements have reported…
Apple Inc. Allegedly Paid Tim Cook, Other Executives Too Much
Apple Inc. miscalculated the values of performance-based stock compensation for CEO Tim Cook and other executive officers, an institutional investor alleges in advance of an upcoming stockholder vote. Instead of awarding $77.5 million for several executives per fiscal year, Apple awarded about $92.7 million in restricted stock units for FY 2021 and about $94 million…
DOJ Announces New Clawback Policies at the American Bar Association National Institute on White Collar Crime
The Justice Department has a new policy “to shift the burden of corporate malfeasance away from uninvolved shareholders onto those more directly responsible.” Deputy Attorney General Lisa Monaco announced a pilot program that will (1) make sure every corporate resolution involving the Criminal Division will include a requirement that the resolving company develop compliance-promoting criteria…
As You Sow: Most Overpaid CEOs 2023
As You Sow has released its annual “Most Overpaid CEOs” list for 2023. This is not highest-paid but most overpaid in terms of the value they bring to shareholders. Some of the same names keep turning up, year after year, including Jamie Dimon of JP Morgan Chase (Compensation Committee: Linda B. Bammann, Todd A. Combs,…
VEA Vice Chair Nell Minow on CEO Pay Cuts: CNN
Apple, for example, said it is cutting the target pay package of Cook by 40%. But that still leaves him with a massive $49 million in total compensation. “They are still overpaid. Let me be super clear about that,” said Minow. CEO pay cuts could be just the start
Apple CEO Tim Cook receives a 40% pay cut after shareholder vote
Apple CEO Tim Cook will receive a pay cut in 2023 to $49 million in total compensation, the company said in a filing with the SEC. Cook requested the change, Apple said in the filing, following a shareholder vote on his pay package. The company also reduced the number of restricted stock units Cook would…
Challenge to Musk’s $56 BILLION Pay Package
From Rebecca Bellan via Veritas: As if Elon Musk didn’t have enough on his plate, the world’s richest man is headed to court to defend his $56 billion Tesla pay package. Richard Tornetta, a Tesla shareholder who filed suit in 2019 to rescind Musk’s 2018 pay deal, claims the package — “the largest compensation grant…
Twitter’s Golden Parachutes: Fired Twitter Execs May Receive $141 Million, Reports Say
We predict that Elon Musk’s efforts to cancel these payments by claiming that the executives were fired for cause just days after he took over Twitter will not be successful. Four top Twitter executives fired by billionaire Elon Musk could receive separation packages totaling $141.1 million, according to research firm Equilar, as the world’s richest…
Agenda – SEC’s Clawback Rule Could Change Compensation Structures
After years of anticipation from corporations, institutional investors and better-business advocates, the Securities & Exchange Commission adopted its final clawback rule this week requiring companies to recover erroneously awarded incentive-based compensation after making a financial restatement. The new rule will force companies to craft policies aligned with the SEC’s standards — and that also goes…
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