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…

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….

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…

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…