CEO compensation consultants Ira Kay, John Ellerman, and Sarah Blivens make the best arguments they can to support the current system of CEO pay in their firm’s newsletter. We believe that CEO compensation is a major competitive advantage for U.S. companies due to our own and extensive academic research, our decades of consulting with thousands…
Tag: compensation
Half of companies are reviewing their pay policies after #MeToo and Time’s Up
We hope this review is accompanied by clear and effective incentives and consequences to ensure a safe work environment with equal opportunities for women and minorities. Forty-eight percent of companies say they’re reviewing their pay policies to ensure parity between men and women in light of the #MeToo phenomenon and Hollywood’s Time’s Up movement, according…
Netflix raises executive salaries, proving that ‘performance-based’ pay always was a sham – LA Times
One of our favorite reporters, Michael Hiltzik, writes a very important story about what the new tax bill reveals about the failures of CEO “incentive” pay. The big news Friday on the executive compensation front is that Netflix is converting some of its “performance-based” pay for its top executives to straight salaries, thanks to the…
Church of England: we’ll vote to block excessive boardroom pay deals | Business | The Guardian
The Church of England, a major institutional investor, has put UK company bosses on notice that exorbitant pay deals will not be tolerated.<P><P>The Church Investors Group, which unites the Church of England and 58 related charities and organisations managing a combined £17bn, has written to the 350 biggest companies on the stock market to set…
Teamsters demand McKesson CEO return millions of dollars for role in opioid crisis – The Washington Post
The Teamsters union called Tuesday for health-care giant McKesson to take back millions of dollars in incentive pay from chief executive John H. Hammergren, citing damage to the company’s reputation caused by its role in the opioid crisis. In a letter, Ken Hall, general secretary and treasurer of the International Brotherhood of Teamsters, urged the company’s…
SEC Unveils Executive Pay Ratio Guidelines – WSJ
The controversial “pay ratio” rule has finally been approved, requiring companies to disclose the ratio between the pay for the top executives and the median employee. Company executives have argued that this number is hard to calculate and misleading. Investor groups have responded that if the company knows how many employees it has and how…
Agenda – Director Pay Lawsuits Push for Equity Limits, More Disclosure
VEA Vice-Chair Nell Minow is quoted in the video portion of this story. A spate of lawsuits challenging director compensation over the last few years has prompted many companies to make serious moves to set new limits on annual compensation, equity awards and cash payments for board members. Source: Agenda – Director Pay Lawsuits Push…
Wells Fargo to Claw Back $41 Million of Chief’s Pay Over Scandal – NYTimes.com
Wells Fargo announced on Tuesday that it would claw back compensation valued at $41 million from its embattled chairman and chief executive, John G. Stumpf, as the financial consequences of the scandal over illegally created sham accounts at the bank reached the executive suite.The action represented one of the first times since the 2008 financial…
Wells Fargo chief forfeits $41m amid corruption probe – BBC News
Wells Fargo chief executive John Stumpf will forfeit $41m (£31.5m) in bonuses as the bank tries to stem a scandal over its sales practices.The bank has launched an investigation how more than two million deposit and credit card accounts were opened without customers’ permission.The bank said Mr Stumpf would not receive a salary during the…
SEC to Companies: Come Clean on CEO vs. Worker Pay Gap
In a lagged and dilatory but thought-provoking move in the US corporate governance and transparency landscape, SEC approved Dodd-Frank’s requirement on disclosing CEO vs. Worker Pay Gap after five years of procrastination (Congress passed the Dodd-Frank financial reform bill in July 2010. Dodd-Frank created the disclosure requirement but left the SEC to determine exactly how…
Wells Fargo scandal puts focus on ‘clawbacks’ of executive compensation – LA Times
VEA Vice Chair Nell Minow is quoted in an LA Times story about Wells Fargo: Yet it’s likely “nothing” will be done with the compensation of Tolstedt and other executives because the decision is being made by Wells Fargo, said Nell Minow, vice chair of ValueEdge Advisors, which promotes strong corporate governance. “At the end…
Wells Fargo “sandbagger”-in-chief in charge of phony account division received $124 million in exit pay – Salon.com
The Wells Fargo executive who ran the division in which employees created two million unauthorized accounts — a process referred to as “sandbagging” within the company — will not face the same fate as the 5,300 people whose work she ostensibly oversaw. Instead of being fired, the so-called “sandbagger”-in-chief, Carrie Tolstedt, will walk away with…
