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…
Tag: ceo compensation
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…
CalPERS: 5-Year Horizon for Pay Plan Reviews and No Votes on Comp Committee Members in Extreme Cases
CalPERS, which cast “against” votes at 43 percent of its portfolio companies in its Say-on-Pay voting during the 2018 proxy season and against 53 percent in 2019, is continuing to adjust its methodology for evaluating pay plans. CalPERS Adopts New Say-on-Pay Methodology – JOHN ELLERMAN compensation consultants. That same year, CalPERS announced a significant change…
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…
Proposed Legislation: Tax excessive CEO pay
The Tax Excessive CEO Pay Act, introduced by Senator Bernie Sanders and Representatives Barbara Lee and Rashida Tlaib, would raise the corporate tax rate for any companies that pay their executive 50 times more than their typical workers. The bill begins with a 0.5 percent tax. The worst offending companies that pay their CEO more…
CBS Chief Will Get $100 Million Severance and Still Keep His Job – Bloomberg
CBS Corp. acting Chief Executive Officer Joe Ianniello is in line for a hefty haul when Viacom Inc. completes its proposed merger with the broadcast network. While he won’t get to lead the combined entity, he’ll collect $100 million severance and remain chief of CBS with a new contract entitling him to tens of millions…
CEO PAY: TRICK OR TREAT? – MSCI
Our previous research shows that CEO pay plans may have been misaligned with long-term shareholder returns. The Council of Institutional Investors now is focusing on this topic. Over the past several proxy seasons, institutional investor sentiment on executive pay has become more negative, particularly among select large European asset owners and some of the most…
Why CEOs are paid so much – CNN
Most big public companies are now required to provide shareholders with a vote on CEO compensation under the SEC’s Say-on-Pay rule. The vote results are not binding, so don’t require the board to take action. But they do let boards know how shareholders feel about the issue. The rule has only been in effect for…
CalPERS Votes Against Pay at 1,195 Firms – Corporate Governance
Jim McRitchie reports on CalPERS votes against pay plans: Equilar announced, in partnership with CalPERS, the release of the CalPERS P4P Scorecard in Equilar Insight, the leading executive compensation benchmarking software solution. The release of the new scorecard is an extension of the five-year realizable pay calculation CalPERS and Equilar released earlier this year. Said…
