In an op-ed in the New York Times, Bill Saporito writes: There are some good reasons C.E.O. pay has risen. Large companies keep getting bigger, and in some ways more complex. Health care, pharmaceutical and media companies have been making sizable acquisitions as these industries continue to consolidate. Disney, for instance, just bought a large…
Tag: ceo compensation
Big Companies Pay CEOs for Good Performance—and Bad – WSJ
The mechanics of chief-executive pay have grown ever more complex, but the rules remain simple: Strong performers get a raise. So do most of the rest. For the fourth year straight, the biggest U.S. companies set CEO pay records in 2018, a Wall Street Journal analysis found, even as a majority delivered negative stock price…
You Have to Look Hard to Find Where the CEO Pay is Hidden at Hasbro: Fortunately, Rosanna Weaver at As You Sow Did
Rosanna Weaver of As You Sow reports on the hidden excesses of CEO Brian Goldner’s pay package at Hasbro. We note the members of the Hasbro compensation committee: Edward M. Philip, Kenneth A. Bronfin, Sir Crispin Davis, Lisa Gersh, Linda K. Zecher. While the reported compensation of Chairman and CEO Brian Goldner does not look…
VEA Vice Chair Nell Minow on CEO Pay: Michael Lewis Podcast
We highly recommend Against the Rules, the superb new podcast series from Michael Lewis (author of The Big Short, The Fifth Risk, Liar’s Poker, and much more) that examines the decline of “refs,” the independent arbiter formerly relied on but now losing credibility, from basketball to art to, yes CEO pay. VEA Vice Chair Nell…
Schroders shareholders urged to rebel over CEO’s £6m bonus | Business | The Guardian
The fund manager Schroders is at risk of a shareholder backlash after an influential advisory firm issued a warning about “excessive” bonuses and the appointment of a Schroder family member to its board.Glass Lewis has recommended that at next month’s annual meeting investors vote against the company’s pay report, as well as the election of…
CEO Stock Options Drive Income Smoothing
[A] new study finds that to a large extent, [any benefit from income “smoothing”] actually depends on the relative volume of stock and stock options held by the CEO. Prior research has offered two competing explanations for corporate income smoothing, notes the study, “Managerial Equity Holdings and Income-Smoothing Behavior,” published in the spring issue of…
Here’s one way to tell if a company is overpaying its CEO – MarketWatch
VEA Vice Chair Nell Minow is quoted in this article about use of non-standard financial reporting to inflate CEO compensation: U.S. companies that use nonstandard numbers to calculate executive compensation are overpaying their top managers, according to a new research report. The working paper, “High Non-GAAP Earnings Predict Abnormally High CEO Pay,” by Nicholas Guest…
Companies do better when they tie outgoing CEOs to keeping stock | Financial Times
Companies that tie senior executives to keeping their shares when their job ends perform better than those that let bosses sell stock when they leave, according to research by Schroders, the £421bn London fund house.Corporate governance activists want chief executives to be required to hold shares in the companies they run for a set period…
UK MPs’ Proposals On Curbing Excessive Corporate Pay Resonate For Ethics And Society — Dina Medland
On a day in Britain when it feels very much as if everything is broken, there is an important report out from the UK parliament’s business select committee that points to one step forward on repair: the critical need to join up the dots in the debate around the fundamental role of business in society….
Many S&P 500 CEOs Got a Raise in 2018 That Lifted Their Pay to $1 Million a Month – WSJ
The strong U.S. economy has created millions of jobs and pushed up wages for many Americans. It also helped many big-company CEOs secure another raise and total compensation worth $1 million a month.Median compensation for 132 chief executives of S&P 500 companies reached $12.4 million in 2018, up from $11.7 million for the same group…
