Investors Want ESG Targets in CEO Pay

From Veritas The investor landscape around ESG (Environmental, Social, and Corporate Governance) metrics in executive compensation programs is quickly evolving as institutions are pressured to set stricter, and more public, policies covering this formerly niche area, rating agencies are increasingly reporting on the use of ESG executive compensation metrics, and there are a growing number…

Comp Committees Lower Performance Benchmarks to Award Bonuses

According to Veritas Executive Compensation Consultants: Although most companies have seen their operating plans upended by the Covid-19 pandemic, compensation committees have largely declined to announce changes in the midst of the crisis to annual incentive plans for the year. Now, however, as the impact of the pandemic is coming into focus, some companies are…

Redesigning Corporations: Incentives Matter

In the 21st century, capital is so much easier to raise that we should no longer have to sacrifice other public goods or the collective common interest in order to facilitate fund-raising. Our corporate laws should reflect this fact, but do not. With the “free” tailwind of today’s easy capital-raising, corporations have become massive in…

Pay Ratio, Proxy Disclosure and Say on Pay Data from Shareholder Value Advisors

A webinar hosted by Stephen F. O’Byrne of Shareholder Value Advisors, revealed the meaningful and material link between compensation and shareholder value, the missing metric, and what the data show: Average employee pay can provide great insight on the alignment of employee pay with management pay and shareholder value but the required analysis goes far…

Will Comp Committees Factor in ESG?

At the Harvard Law School Forum on Corporate Governance and Financial Regulation, Don Delves, Robert Newbury, Ryan Resch, of compensation consultants Willis Towers Watson write about efforts to factor in ESG goals in incentive compensation. Since we have said that our evaluation of the new focus on stakeholders will depend in part on how pay…

Wells Fargo CEO Tim Sloan Got 5% Pay Raise In Spite Of Scandals | Fortune

In spite of the scandals upon scandals that Wells Fargo dealt with last year—and continues to deal with—the bank submitted a security filing Wednesday which revealed that CEO Tim Sloan received a 5% pay raise between 2017 and 2018, totaling to an $18.4 million salary.Sloan’s compensation, which Reuters reports included a $2 million bonus for…

Surprise! Comp Consultants Think CEO Pay is Just Fine

CEO compensation consultants Ira Kay, John Ellerman, and Sarah Blivens make the best arguments they can to support the current system of CEO pay in their firm’s newsletter. We believe that CEO compensation is a major competitive advantage for U.S. companies due to our own and extensive academic research, our decades of consulting with thousands…