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…
Tag: ceo compensation
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…
DynCorp Denied $6 Million CEO Payment Under Contract Cost Rules
If only shareholders had the same right to disallow excessive payments to CEOs. DynCorp International LLC failed to show entitlement to reimbursement of $6 million in severance paid to a former CEO because the payments weren’t reasonable under government contract cost rules, the Armed Services Board of Contract Appeals said in a decision released Tuesday….
While Millions Lost Jobs, Some Executives Made Millions in Company Stock – The New York Times
If we had a dollar for every time we pointed out that stock and option grants to CEOs and other top executives should be indexed to the peer group, then we’d probably have $60 million, too. This is not rocket science. These gains have nothing to do with the individual performance of these companies or…
Darden Restaurants — As You Sow
At As You Sow, Roseanna Weaver points out that the Darden board found a way to give the CEO a bonus even though COVID-19 has meant decreased revenues for the restaurant businesses. The Compensation Committee “approved modifications to the performance goals for fiscal 2020 annual incentives” because of the impacts of the COVID-19 pandemic. Lowering…
Corporate Insiders Pocket $1 Billion in Rush for Coronavirus Vaccine – The New York Times
Yet another reason insiders should not be allowed to sell stock until 3-5 years after leaving the company. And yet another reason that boards of directors should be more careful in setting incentive compensation benchmarks to avoid short-term profit-taking. They are making millions of dollars after announcing positive developments, including support from the government, in…
Wanted: CEO to fight income inequality by cutting executive pay – HoustonChronicle.com
General Motors CEO Mary Barra condemns discrimination against LGBT people, while Apple CEO Tim Cook defends immigrants brought to the United States illegally as children. More and more business leaders are joining activists to address society’s most divisive issues. Where are the top executives, though, taking concrete steps to address income inequality? Who is taking…
Pay guaranteed, performance optional – How CEO pay in America got out of whack | Business | The Economist
Too often, executive compensation in the us is ridiculously out of line with performance…The deck is stacked against investors.” It was with these words that in 2006 Warren Buffett, a legendary investor and red-blooded capitalist, challenged the received wisdom in corporate America about ceo pay. This maintains that bosses deserve generous rewards because these are…
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…
The Insidious Vocabulary of CEO Compensation
As you can imagine, a lot of energy and creativity is going into figuring out how to make sure executives do not lose their bonuses because of COVID-19 economic uncertainty. We are watching this closely as it subverts the entire concept of incentive compensation if it is all upside and no downside. Incentive compensation is…
