A new report from ISS finds that CEO pay plans that get the highest “no” votes from shareholders are more likely to be less diverse. In other words, boards with more diversity are less likely to proposed CEO pay plans that shareholders deem excessive. Interestingly, it was not just high-profile, large companies that were the…
Tag: ceo pay
Agenda – Glass Lewis Raises the Bar on E+S Incentive Metrics
Proxy advisor Glass Lewis wants companies to offer more robust disclosure about their use of environmental and social incentive metrics, according to the firm’s 2022 proxy voting guidelines. While Glass Lewis won’t require the use of these metrics, it will consider them in say-on-pay analyses. Agenda – Glass Lewis Raises the Bar on E+S Incentive…
Agenda – SEC Nabs Another Company for Failure to Disclose Perks
Memo to boards: You pay them plenty. Let them pay for their own plane rides and credit card purchases. Last week, the SEC settled charges with Texas oilfield company ProPetro Holding Corp. and its former CEO for not properly disclosing hundreds of thousands of dollars’ worth of perquisites, including personal use of the company airplane…
Agenda – ESG Metrics Not Enough to Drive ‘Real Change,’ Say Experts
As S&P 500 companies increasingly move to tie executive compensation to environmental, social and governance metrics, experts caution that pay incentives alone cannot drive the changes needed for companies to attain their ESG goals. More than half (57%) of S&P 500 companies, such as investment management company T. Rowe Price, Valero Energy and health insurance…
Agenda – Incentive Pay Under Fire
Sen. Elizabeth Warren (D-Mass.) has Wells Fargo & Co. in her cross hairs again. Last week newly elected board chair Stephen Black received a letter from the Massachusetts senator asking for details on CEO Charles Scharf’s compensation incentives, including specific metrics regarding governance and regulatory compliance targets and Scharf’s performance against them. On the same…
Top chief execs ‘paid more in a year than a UK worker gets in a lifetime’ | Executive pay and bonuses | The Guardian
The annual pay of FTSE 100 chief executives fell during the pandemic but still equates to what a key worker would earn in a lifetime, according to a report that highlights the UK’s wage divide and the taxpayer support that has kept some companies afloat. The bosses of companies in the blue-chip share index were…
Executive Stock Sales Are Under Scrutiny. Here’s What Regulators Are Interested In. – WSJ
The current system is one big loophole. You can schedule the sale so the date is fixed, but executives have almost complete control over corporate operations and the release of news. [Emphasis added below] Securities regulators are rethinking rules on popular plans that let corporate executives sell stock without violating insider-trading provisions. The plans—known as…
Agenda – Investors Ask: Are CEOs Special Enough for Special Awards?
Note to boards: Consider the diminishing marginal returns of incentive grants on top of incentive grants. You should not have to bribe a CEO to stay in the job. Companies in the industries hardest hit by the pandemic granted extra long-term incentive awards to executives last year, according to a report from Compensation Advisory Partners….
Proxy Season Review: A Record Number of No Votes on CEO Pay — As You Sow
The 2021 proxy season (proxies voted between 7/1/20 to 6/30/21) was a record breaker on several levels. On one level, 16 companies had failed advisory votes on pay, an increase from the 10 in 2020 and 7 in 2019. On a deeper level, the trends are more remarkable – 32 S&P 500 companies had more…
An Unpersuasive Argument Against ESG Targets in Executive Compensation
In the Wall Street Journal, Alex Edmans argues against ESG targets in incentive compensation. Here’s why he’s wrong (but a little right). He is a little bit right in saying that “The evidence shows that paying for targets encourages executives to hit those targets. But it doesn’t necessarily encourage them to improve performance. The crux…
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