Through its research, blogs, and commentary, Farient is driving the conversation on executive compensation and governance issues.

September 19, 2018

CFO – SEC Move Could Lessen Proxy Advisers’ Influence

By David McCann

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September 19, 2018

Farient Alert: SEC Rescinds Guidance Providing Regulatory Support for Using Proxy Advisors

On Thursday, the SEC rescinded two guidance letters from 2004 that will potentially reduce the influence that ISS has on, among other things, Say-on-Pay votes.

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September 18, 2018

Board Diversity Legislation: What You Need to Know

board diversity legislation

Diversity on corporate boards continues to be a pressing topic. According to research from Catalyst, Women on Boards 2020 and a recent study from McKinsey, gender diverse boards are 21 percent more likely to experience above-average performance. This, in turn, continues to push investors to demand that companies diversify their boards. Within the past year, BlackRock, State Street and Vanguard have changed their voting guidelines and will withhold votes for sitting directors at companies that do not have women on their boards. The hurdle is expected to rise in 2020 when these investors expect at least two female directors to be present on every board. Some states are even pushing board diversity legislation for public companies.

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September 11, 2018

Bloomberg – Trillion-Dollar Investors Don’t Mind Billion-Dollar CEO Awards

By Anders Melin

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August 15, 2018

See what Seven Months of the CEO Pay Ratio Looks Like

CEO pay ratio Photo by Max Bender on Unsplash

After the initial rush of proxy season, CEO pay ratio disclosures continue to trickle in. We highlighted the fact that sector and staffing strategy, and the associated employee pay, significantly influence the reported ratio. We also suggested that comparisons across companies would continue to be difficult given latitude in acceptable calculations. In this week’s Farient Brief, we revisit the pay ratio for new discoveries since May.

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