July 27, 2016

Reflections On Proxy Season 2016

As we continue our Forbes.com interview series, we are fortunate to have Robert (Bob) McCormick, Chief Policy Officer at Glass Lewis, participating with us. Glass Lewis is one of the leading independent providers of global governance services, and helps institutional investors understand and connect with the companies in which they invest. Each year Glass Lewis covers more than 20,000 meetings in 100 countries.

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June 28, 2016

Putting The Long-Term Back Into Long-Term Incentives

Putting The 'Long-Term' Back Into Long-Term Incentives

There has always been tension between making long-term incentives both motivational and competitive, while at the same time aligning pay design with the longer-term interests of shareholders. Thus is the case with performance and vesting periods. Shorter periods are considered to be good for the talent (motivational and competitive), while longer periods are considered to be good for investors (alignment). The equilibrium for performance and vesting periods has seemed to settle on an average of three years – just short enough to provide line of sight and a reasonable time frame for goal-setting, and just long enough to demonstrate a track record for sustainable shareholder returns.

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March 7, 2016

Pay For Performance Alignment: Total Shareholder Value Vs. Economic Value Added

Robin Ferracone, CEO of Farient Advisors, interviews Bennett Stewart, founder of EVA Dimensions, about total shareholder return (TSR), economic value added (EVA), and other value-driving performance metrics to better understand the trade-offs among them.

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May 18, 2015

Forbes – “What The SEC’s Proposal On Pay For Performance Means For Companies Going Forward”

Finally, after five years of waiting, the SEC issued new rules a few weeks ago on the link between pay and performance disclosure. Farient takes a closer look at the SEC’s pending pay for performance rule to determine whether these rules are reasonable and what they’ll mean for companies going forward.

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December 17, 2014

Forbes – “Will Target’s New CEO Bring Holiday Cheer for Shareholders?”

New Target CEO’s proven track record has potential to prove long term business performance for the retailer.

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