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Beyond the Headlines – Executive Pay in the Pandemic Year
Executive Summary 2020 was a strong year for investors, following very robust equity returns in 2019 Compensation decisions are made early in the fiscal year. For 2020 this meant compensation decisions were made prior to understanding the impact of COVID-19 Because short-term incentive (STI) plans are awarded for past performance,…
Read More > 11.16.2021
Briefs
Board Oversight of Stakeholder Strategies
By: RJ Bannister, Partner, Farient Advisors Companies around the world are including “stakeholder” considerations in their strategy and culture. Today’s stakeholders expand beyond investors, and regulators, and include customer and community interests, suppliers and employees. As stakeholder prominence becomes commonplace, every company should consider two fundamental questions: (1) what is…
Read More > 03.30.2021
Briefs
Interview: Robin Ferracone and Bob Zukis Talk Systemic Risk and Stakeholders
In an interview, Robin Ferracone and Bob Zukis discuss systemic risk and stakeholders.
Read More > 03.03.2021
Briefs
In the Year of the Stakeholder: Getting Skin in the Game
I am convinced that focusing on stakeholder wellbeing and creating a level of accountability through incentives will have long-term benefits for everyone. As we focus on doing right by stakeholders, we can all help maintain a healthy economy, expand opportunities and protect our planet.
Read More > 02.17.2021
Briefs
Use of Diversity, Equity & Inclusion (DE&I) Metrics in the S&P 500
When Diversity, Equity, and Inclusion (DEI) is used as an incentive measure, it is most often part of a weighted scorecard or a weighted measure up to approximately 20% of STI
Read More > 02.02.2021
Briefs
Executive Compensation 2021: Back to the Future
Welcome to 2021. The first two weeks of January have certainly foreshadowed an eventful year to come. To ring in the New Year, Farient and our partners in the Global Governance and Executive Compensation Group (GECN Group) just published our newest research entitled 2021 and Beyond: Global Trends in Stakeholder Incentives.
Read More > 01.13.2021
Briefs
The Evolving Role of the Compensation Committee: It’s More than Pay
By Robin Ferracone and Dayna Harris No one will argue that 2020 has been an extraordinary year. From multiple months of COVID-19, the killing of George Floyd in Minneapolis, Breonna Taylor in Louisville, Ahmaud Arbery in South Georgia, among others, human capital management and most notably diversity, inclusion, and equitable…
Read More > 11.23.2020
Briefs
Directorship Magazine: The Most Important Dimension of Alignment – Why Share Ownership Matters as Much as Pay
If you look up Sheldon Adelson’s pay in the Las Vegas Sands Corp. proxy statement, you would see that he makes about $25 million per year as chair and CEO. About half of that sum is nominally at risk in his incentive plan. Today’s S&P 500 CEOs typically have about 80 percent to 90 percent of their annual pay at risk. So, Adelson’s pay appears to be only modestly aligned with his performance. And yet he sees his personal net worth from company shares fluctuating on average by more than $1 billion per week.
Read More > 09.16.2020
Briefs
Companies Cut Executive Pay in Changing COVID-19 Landscape
Throughout May, Farient has continued to keep a close eye on compensation trends, particularly as to what actions, if any, S&P 500 companies are taking in regard to their compensation plans as a result of COVID-19. In this brief, we update the overall trends and dive deeper into two examples of companies that have made decisions that are outside of the mainstream, MGM Resorts and Automatic Data Processing, Inc.
Read More > 06.11.2020
Briefs
The Optics of Executive Pay in the Time of COVID -19
In mid-March, Farient began tracking companies making adjustments to their pay programs in response to the economic fallout of the virus.
Read More > 05.04.2020
Briefs
How Resilient Is Your Sector’s TSR? Covid-19 and Its Impact on TSR
The spread of coronavirus in 2020 has resulted in the largest global catastrophe since the end of the Second World War. It also may be responsible for the largest economic collapse since the Great Depression. As the virus began to spread through Asia and parts of Europe in the first…
Read More > 05.04.2020
Briefs
Journal of Applied Corporate Finance – Are Performance Shares Shareholder Friendly?
Since the early 2000s, executive compensation has experienced a secular shift toward performance shares—equity awards whose vesting is based on performance as opposed to time or service.
Read More > 10.25.2019
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