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Farient Briefings: Judge Rules Musk Comp Plan Unfair

Into the Void: Judge Rules Musk Comp Plan Unfair The reversal by a Delaware court of Elon Musk’s 2018 compensation was almost as stunning as its sums and performance measures, which Musk hit or exceeded. The unprecedented $55.6 billion equity package was challenged by a single investor who reportedly owned…

Read More > 02.19.2024

Briefs

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Tesla Case: Questions of Process, Independence

Judicial opinions rarely make for good reading. The Delaware Chancery Court decision rescinding Tesla CEO Elon Musk’s $55.6 billion performance-based equity compensation package is an exception. In a 200-page judgment released after the market close on Jan. 30, Chancellor Kathaleen St. Jude McCormick cited Musk’s “extensive ties”…

Read More > 02.19.2024

In the News

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Why did Tim Cook’s pay package hold up in court while Elon’s failed?—Fortune

Elon Musk’s pay was voided by a Delaware judge, but Tim Cook’s was held up by a New York court. Why? “What happened with Tim Cook is very common in public companies,” said Marc Hodak, partner at executive compensation consultancy Farient Advisors. “They award performance shares based…

Read More > 02.09.2024

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Farient Briefings: SEC’s Pending Rules Put Boards at the Ready

  SEC’s Pending Rules Put Boards at the Ready “Increased regulatory requirements” top the list of risks directors say are most likely to impact their companies in the next 12 months. Since succeeding Jay Clayton as SEC chair in 2021, Gary Gensler has been on a tear, proposing or finalizing…

Read More > 01.30.2024

ESG Spotlights

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ESG Tracker Spotlight | Allstate

Weighted stakeholder incentive measures were moved from the short-term to the long-term incentive plan in 2023 by Allstate, according to Farient’s ESG TrackerTM. Allstate added ESG factors to its STI plan in 2021 with a focus on key strategic and DEI priorities. Its objective…

Read More > 01.30.2024

Briefs

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SEC’s Pending Rules Put Boards at the Ready

“Time is money. Time is risk.” So said U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler speaking at the European Commission on January 25, 2024, in reference to the timing of the clearance and settlement cycle for securities trading. Beginning on May 28, 2024, a rule…

Read More > 01.30.2024

In the News

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The Incredible Shrinking CEO –Agenda

The average tenure of the CEO has become much shorter, according to research by Farient and Corporate Board Member. This means boards need to think creatively and proactively to ensure sudden CEO departures don’t wreak havoc on the company. In this Agenda article, which focuses on the…

Read More > 01.29.2024

Newsletters

Farient Briefings: A New Year Predicated on CEO Transitions

  A New Year Predicated on CEO Transitions The single most important responsibility of any board is to ensure that management is up to the task of leading both in the moment and in the foreseeable future. Planning for CEO succession requires board diligence to assure strength and depth on…

Read More > 01.17.2024

Briefs

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A New Year Predicated on CEO Transitions

Like families, all companies are different. Those helmed by entrepreneurial founders, legacy executives, or rogue CEOs—some of whom may have controlling stakes in their companies—are the outliers. For most large-company public company boards, leadership transitions take place in an orderly fashion. At least that is how they appear in their…

Read More > 01.16.2024

Briefs

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RIP Compensation Committees?

In a different era, public company boards of directors typically had three standing committees: audit, nominating and governance, and compensation. Today, however, amid the growing complexity of business and changing expectations and rules governing corporations, boards are electing to alter their committee structures to keep pace with their increasing oversight…

Read More > 01.16.2024

Newsletters

Farient Briefings newsletter banner December 2023

Farient Briefings: A Look Back at Comp Committees’ Greatest Challenges

  A Look Back at Comp Committees’ Greatest Challenges What a year it has been. Our world was beset by unthinkable humanitarian crises and wars likely to alter social, personal, and political proclivities for generations to come. It was a good year to refresh our thinking on all aspects of…

Read More > 12.12.2023

Briefs

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A Look Back at Compensation Committees’ Greatest Challenges

What a year it has been. Our world was beset by unthinkable humanitarian crises and wars likely to alter social, personal, and political proclivities for generations to come. It was a good year to refresh our thinking on all aspects of leadership beginning perhaps with Walter Bennis and Burt Nanus’s…

Read More > 12.12.2023

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