Shareholders OK With Soaring Executive Pay In US—Barron’s

June 20, 2024

Wider controversy over high CEO pay – especially in high-profile cases like that of Elon Musk – belies the key factor that compensation is typically linked to company performance and that means happy shareholders, according to this article in Barron’s that quotes Farient Partner Marc Hodak. Another factor is the increasing homogenization of pay programs brought about in part by the Dodd-Frank regulations on compensation, according to Marc: “…the combination of having say on pay and having ISS seem so influential as a proxy advisor, has been that over the last 10 years, compensation programs have become more similar.” And in bull markets, the common trend for CEO pay is upward.

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About Marc Hodak

Marc Hodak Farient headshot SEC rule

Partner, Farient Advisors, Dallas

New York/Dallas
Mobile: (917) 259-0034

Marc works closely with senior management, boards of directors, and investors, in both public and private companies to develop executive compensation programs that are shareholder-friendly, attractive to management, and responsive to the needs and concerns of boards. He is a recognized thought leader in incentive plan design. His articles have been published in numerous magazines, including ForbesNACD DirectorshipDirectors & Boards, and academic journals. He has been quoted in the national press, including the Wall Street JournalBloomberg, and Reuters. He is a sought-after speaker at forums and conferences throughout the U.S. and Europe on executive compensation, corporate governance, and value management. Marc was named to the 2020 NACD Directorship 100, a list of the most influential people in corporate governance and the boardroom. For the last 10 years, Marc has taught corporate governance as a professor at NYU’s Stern School and as visiting lecturer at the University of St. Gallen in Switzerland. Before joining Farient, Marc was the principal at Hodak Value Advisors and led value-based management implementation and related projects at Stern Stewart & Co. He earned his MBA in finance from the University of Maryland.

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