Agenda: What a Biden Win Means for Comp Committees

by Stephanie Forshee

As if boards weren’t dealing with enough transformation in 2020, the looming presidential election could potentially mean significant changes for compensation committees.

Robin Ferracone, founder and CEO of compensation consultancy Farient Advisors, agrees that a Biden administration would certainly equate to changes in the tax code.

“The government has tried to use the tax code to quell increases in executive compensation, but it’s never really worked,” she says. “But I think we may see a re-emergence of that.”

In some municipalities such as Portland, Ore., and California, lawmakers have begun to tax companies based on their CEO pay ratio, which compares the top exec’s pay to the median worker. Ferracone predicts that under a Biden administration or under a Democratic-majority Congress, corporations could face more taxes of this nature.

She’s also predicting an increase in reporting requirements on ESG measures.

“Right now, that’s not legislated, it’s left to companies on a case-by-case basis, deciding how they want to report that, but I have a feeling we may get more reporting requirements,” she says.

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About Robin Ferracone

Founder and CEO, Farient Advisors/GECN Group

New York: (646) 626-6931
Los Angeles: (626) 799-2700
robin.ferracone@farient.com

As the founder and CEO of Farient Advisors LLC, Robin has led the strategic development and expansion of the executive compensation, performance, and corporate governance advisory firm. Her client work focuses on providing high-impact decision-making support and organizational solutions based on insightful market insights.

With over 30 years of consulting experience, Robin advises clients in business and talent strategies, executive compensation, organization, value management, and performance measurement. She is the author of Fair Pay Fair Play: Aligning Executive Performance and Pay (John Wiley & Sons, 2010). In addition, Robin has authored numerous articles, is a regular contributor to Forbes.com and Directorship magazine, and is often quoted in national publications. She is a frequent presenter for prominent organizations such as the Council of Institutional Investors, Society for Corporate Secretaries and Governance Professionals, the National Association of Corporate Directors (NACD), and The Conference Board.

Robin formerly served on the board of directors of Trupanion, Inc., where she chaired the compensation committee. In addition, Robin is a trustee emeritus of Duke University. She currently chairs the board of WildAid and is a member of 5050 Women on Boards, NACD, Women Corporate Directors, YPO Gold, and the Trusteeship. For 12 years, Robin has been named to the NACD Directorship 100, a list of the most influential people in corporate governance and the boardroom. In 2014, she was selected as one of EY’s Entrepreneurial Winning Women, an annual competition recognizing female entrepreneurs. Robin is also a founding partner of the Global Governance and Executive Compensation (GECN) Group collectively serving clients in more than 35 countries across five continents.

Robin received an MBA from Harvard Business School and a BA in management science and economics from Duke University.

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