Agenda – Incentive Pay Under Fire

Sen. Elizabeth Warren (D-Mass.) has Wells Fargo & Co. in her cross hairs again. Last week newly elected board chair Stephen Black received a letter from the Massachusetts senator asking for details on CEO Charles Scharf’s compensation incentives, including specific metrics regarding governance and regulatory compliance targets and Scharf’s performance against them. On the same…

Media CEO Salary & Pay: Richest Hollywood & Tech Executives – Deadline

VEA Vice Chair Nell Minow is quoted in this article about the way compensation committees are altering incentive pay benchmarks to shovel more money into the bank accounts of CEOs. Nell Minow, vice chair of ValueEdge Advisors, which guides shareholders on how to use their rights to preserve portfolio value and diminish risk — including…

C.E.O. Pay Remains Stratospheric, Even at Companies Battered by Pandemic

From the New York Times: “We’ve created this class of centimillionaires and billionaires who have not been good for this country,” said Nell Minow, vice chair of ValueEdge Advisors, an investment consulting firm. “They may build a wing on a museum. But it’s not infrastructure — it’s not the middle class.” The gap between executive…

CEO Pay Surged in a Year of Upheaval and Leadership Challenges – WSJ

CEO pay surged in 2020, a year of historic business upheaval, a wrenching labor market for many workers and unprecedented challenges for many leaders. Median pay for the chief executives of more than 300 of the biggest U.S. public companies reached $13.7 million last year, up from $12.8 million for the same companies a year…

Let Them Eat Tacos: Chipotle Board Wildly Overpays the CEO Because Pandemic

Chipotle’s board has decided that their CEO deserves extra pay due to the pressures of the pandemic. So, “we made “COVID-related modifications” to CEO’s performance shares that increase the total level of his reported compensation from $14.8 M to $38 M.” Compensation Committee: Chairman: Neil W. Flanraich Patricia Fili-Krushel Greg Engles  Mauricio Guttierez The board…

Executive Compensation and Climate Targets

As environmental, social and governance (ESG) issues increasingly take center-stage, there is more interest from investors and boards in putting climate targets in their compensation policies. “Willis Towers Watson is partnering with Climate Governance initiative in collaboration with the World Economic Forum to survey and interview board directors and Remuneration Committee members to understand how…

Starbucks Shareholders Reject Executive Pay Proposal – WSJ

Starbucks Corp. shareholders rejected the coffee company’s executive compensation proposal, a rare rebuke to a major U.S. company. The plan voted down by Starbucks shareholders Wednesday includes millions of dollars in bonus and retention pay for Starbucks’ chief executive, though the resolution was nonbinding and may not affect executives’ compensation. Only 10 S&P 500 companies…

Agenda – Boards Sharpen Tools to Circumvent ‘Ugly’ Clawback Process

In an attempt to sharpen the tools available to boards in the wake of a scandal, companies are amending otherwise standard clawback provisions or looking beyond clawbacks altogether. Indeed, following the MeToo movement, policies were expanded to include for-cause termination, misconduct and, in rare cases, sexual misconduct, as Agenda has reported. That trend has continued,…