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,…

100 Most Overpaid CEOs 2021–Register for the As You Sow Webinar

This webinar will be discussing the release of the 2021 edition of “The 100 Most Overpaid CEOs. ” The seventh annual “100 Most Overpaid CEOs: Are Fund Managers Asleep at the Wheel?” report will be released on February 25, 2021. Since 2015 As You Sow has analyzed the CEO pay packages of all S&P 500…

Should You Reward Your CEO with Stock Options?

When Boeing CEO Dennis Muilenburg was ousted from the company for his mismanagement of the 737 Max crisis, he left with stock options worth at least a net $18.5 million. At the same time, Boeing’s shareholders took a beating, with the stock losing 25% of its value. Muilenburg, in other words, left with a big…

VEA Vice Chair Nell Minow on Bonuses for Executives in Bankrupt Companies

Nell Minow, an expert in corporate governance and vice chair of ValueEdge Advisors, believes such bonuses should be tied to specific metrics, such as resolving bankruptcy issues by a particular date or taking other steps to ensure the company’s long-term viability. If restructuring efforts fail, some companies will end up having to liquidate and shut…

Compensation Clawbacks: Trends and Lessons Learned | Foley & Lardner LLP – JDSupra

Executive compensation clawback policies continue to grow in popularity. Although the Securities and Exchange Commission (SEC) has not yet finalized its rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) that will require publicly-traded companies to adopt compensation recovery policies, many companies have now voluntarily adopted clawback policies. More than 90 of…