On November 12, Institutional Shareholder Services Inc. (ISS), announced its new policy updates for 2020. The updates, relevant to the United States and matters of executive pay, relate to the pay-for-performance model and the incorporation of Economic Value Added (EVA) metrics in the model’s secondary ‘Financial Performance Assessment’ (FPA) screen.
Last week, The Clorox Company announced a new initiative that ties executive pay to the realization of environmental, social and governance (ESG) goals. In tying executive pay to sustainability goals The Clorox Company joins oil companies Royal Dutch Shell PLC and BP PLC, corporations that have already implemented similarly inspired executive pay or bonus structures. Laura Stein, Clorox executive vice …
“Critical information that other benchmarking reports typically cannot provide…” FOR IMMEDIATE RELEASE PONTE VEDRA BEACH, FL — (June 13, 2018) Understanding executive pay over a lifetime can be a critical differentiator as companies compete for top talent and executives evaluate their opportunities. Two benefits plans may seem very similar at the onset of employment, yet over the years, they may …
CEO Pay Raises are Back in Fashion Says Fortune Magazine A March 20, 2017 article written by Geoffrey Smith, and published in Fortune Magazine, observed that attitudes about executive pay are changing. The article quoted The Wall Street Journal, stating, “CEOs at the U.S.’s biggest 100 companies got a median pay raise of 6.8 percent last year.” Additionally, as author …
Why Does Executive Benefit Benchmarking and Strategic Planning Matter So Very Much? On the surface, two plans may appear equal. Yet, when skillful executive benefits professionals analyze the plans, disparities become glaringly obvious. Cost to the company, reward to the executive, flexibility of benefits, and tax ramifications can vary drastically. Plan sponsors typically work diligently to decrease the costs of …
CEO Tears Up Executive Contract Becomes At Will Employee In a move that has drawn both praise and criticism, American Airlines CEO Doug Parker is becoming an ‘at will’ employee, tearing up his own executive contract. The move, documented by the Securities and Exchange Commission (click to view regulatory filing), means that Parker is no longer guaranteed a set level of compensation and …
Curbing Executive Pay on Wall Street Last week U. S. Regulators proposed new rules to address issues inherent in how Wall Street executive pay is currently handled. Under the new proposal, senior executives at the largest firms, according to the Wall Street Journal, “…would have to defer more than half their bonus pay for four years…” The regulation would impact …
Australia Reins In Executive Pay It’s interesting to see how executive pay differs across various jurisdictions. It has been just over a year since Pensions & Investment Research Consultants Ltd (PIRC), Europe’s largest independent corporate governance and shareholder advisory consultancy, reported that executive pay in Australia would be undergoing significant changes. Stating, “Legislation with teeth puts the bite on excessive payments and builds shareholder engagement,” the update …