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 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…

Bloated Pay Came Before Hain Celestial’s Error – The New York Times

Gretchen Morgenson writes in the New York Times about Hain Celestial, where excessive pay based on a skewed “peer group” should have been a warning sign of investment risk. The Hain Celestial Group, a maker of natural and organic foods and beverages, has been riding high in the market. But on Monday it came crashing…