SEC Roundtable Signals Shift in Executive Pay Disclosure | Farient Briefings
July 31, 2025
SEC Scrutinizes Pay Disclosures With Eye Toward Simplification
A recent U.S. Securities and Exchange Commission roundtable surfaced both consensus and contention among a mixed group of participants on how to simplify and add value to executive compensation disclosures.
Farient CEO Robin A. Ferracone and Partner Marc Hodak actively participated, advocating for targeted reforms such as eliminating the CEO Pay Ratio, streamlining Pay vs. Performance (PvP) disclosures, and revising the Summary Compensation and Equity Tables.
The SEC is now poised to make significant changes, with the potential to enhance clarity and utility for both investors and issuers.
In the News
Under Pressure, U.S. Companies Back Off DEI Pay Metrics—Reuters
The number of S&P 500 companies tying executive compensation to diversity, equity, and inclusion (DEI) metrics is down from 52% in 2024 to just 22% this year, according to data provided by Farient Advisors and reported by Reuters. The shift comes amid growing pressure from activists and a political environment increasingly hostile to DEI initiatives. Farient Sustainability Practice Leader Brian Bueno told Reuters that the reversal reflects growing concerns about legal and regulatory risks. “We know of cases where they decided the [pay] measure created too much legal risk and stopped using it,” he noted.
Starbucks Dangles $6 Million Stock Grants to Executives to Speed Up Turnaround—Bloomberg
Bloomberg reports that Starbucks is offering performance-based stock grants worth $6 million each to executives as part of its “Back to Starbucks” turnaround plan, spearheaded by CEO Brian Niccol. The awards are contingent on aggressive cost-cutting measures and in-store experience improvements, and come amid union criticism and questions about executive pay strategy.
Where to Find Us
Implementing Management Incentive Plans
OP Academy
New York
August 7, 2025
Farient Partner Marc Hodak will lead this half-day in-person training for private-equity operating professionals.
NACD Leading Minds of Governance
Boston, MA
September 17, 2025
Directors & Boards
Compensation and Talent
Virtual
September 25, 2025
National Harbor, Maryland
October 12-15, 2025
Understanding Climate Incentives
Exclusive: Around the globe, the heat is on to combat climate change while some political regimes denounce the veracity between greenhouse gas emissions and a warming planet. Nevertheless, large corporations are reporting Scope 1, Scope 2, and, increasingly, Scope 3 greenhouse gas emissions and linking reductions to executive compensation, according to Farient Advisors’ newly published 2025 Global Trends in Stakeholder Incentives: Climate Strategies and Incentives for Corporate Sustainability.
Learn more about how the world’s largest companies are setting and achieving climate goals by linking climate measures to executive incentives by sector and geography.
About Farient Advisors
Farient Advisors LLC is an independent premier executive compensation, performance, and corporate governance consultancy. Farient provides a full array of services, linking business strategy to compensation through a tailored, analytically rigorous, and collaborative approach. Farient has locations in Los Angeles, New York, and London and works with clients globally through its partnership in the Global Governance and Executive Compensation (GECN) Group. Farient is a certified diverse company and is recognized by the Women’s Business Enterprise National Council.
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