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…

Media CEO Salaries Will Be Hard To Justify In A COVID-19 Economy – Deadline

“The proxies we are looking now at seem like a message from a time capsule. They don’t seem to have a lot of relevance,” says Nell Minow, vice chair of ValueEdge Advisors, a corporate governance advisory firm for institutional investors. “But I am very concerned about what’s happening now.” She’s focused on potentially “big grants…

Study: CEO Pay Rise is Attributable to Company Size

A new study concludes that the rise in CEO pay is attributable to market capitalization. Of course, it is supposed to be attributable to performance. So what we learn from this is that there is a perverse incentive for CEOs to make companies bigger instead of better. In recent decades at least, the size of…

Performance Metrics: Accelerating the Stakeholder Model

When the Business Roundtable announced their “new” commitment to “stakeholders,” we said it was not meaningful unless we saw incentive compensation aligned to specific stakeholder goals. At the Harvard Law School Forum on Corporate Governance and Financial Regulation, Equilar research analyst Connor Doyle looks at current incentive plans tied to goals other than the traditional…