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A Tug of War: Moonshot Awards vs. Shareholder Value
A Tug of War: Moonshot Awards vs. Shareholder Value Many companies across multiple sectors granted their CEOs uncharacteristically large equity awards in recent years. Among the most well-known examples is Tesla’s 2018 grant to its CEO Elon Musk. This award’s fair value on its grant date was $2.3 billion, with…
Read More > 02.15.2023
Briefs
Executive Compensation: An Analysis Identifies ESG Leaders and Laggards
Understanding what distinguishes corporate leaders from laggards in the environmental, social, and governance (ESG) realm provides important guidance on emerging best practices for boards. In this fast-moving arena, Farient Advisors identified a small group of companies who stand out as leaders in incorporating stakeholder measures into their executive compensation plans.
Read More > 01.19.2023
Briefs
Last Stop: 19,341 Feet
There is a running joke among people who know me: Don’t invite me on a trip unless you are serious. I will call the airline within five minutes of the discussion, navigate hotels, and highlight the top 10 things to do anywhere in the world. So, in July of…
Read More > 01.10.2023
Briefs
Tracking CEO Wealth—Who’s Up, Who’s Down
As the stock market goes so goes CEO wealth. A large part of a CEOs’ personal wealth is typically tied to the stock prices of the companies they lead. Thus, the value of CEO-owned stock across the S&P 500—down nearly 20% year to date—has mostly taken a beating. An analysis…
Read More > 12.20.2022
Briefs
Six Steps for Adhering to the SEC’s New Clawback Rule
Six Steps for Adhering to the SEC’s New Clawback Rule A new SEC rule that toughens the clawback of executive pay deemed to have been awarded under false, misleading, or mistaken circumstances that results in a financial restatement goes into effect in the new year. While some companies have…
Read More > 11.30.2022
Briefs
Sneak Peek: New 2023 Research Report Shows ESG’s Staying Power
Environmental, social, and governance (ESG) incentives in executive compensation are becoming more prevalent. For a third consecutive year, research from Farient Advisors in conjunction with the Global Governance and Executive Compensation Group (GECN) finds an increase in the use of stakeholder incentives that demonstrates a commitment to…
Read More > 11.07.2022
Briefs
Performance Shares Reconsidered
By Marc Hodak Consider an investment strategy of buying shares in companies that compensated their executives only with time-based equity, i.e., restricted stock or stock options and without performance shares. Anyone pursuing that strategy over the last decade would have outperformed the S&P 500 by an average of two percent…
Read More > 10.27.2022
Briefs
Executive Pay Increasingly Tied to DEI Goals
Linking DEI goals to exec pay isn’t going away anytime soon. Despite some pushback, tying executive pay to diversity, equity and inclusion (DEI) goals rapidly continues. According to new Farient research, more than one out of every three S&P 500 companies now factor DEI into compensation, sending a signal of…
Read More > 10.10.2022
Briefs
Gensler’s SEC Approves Pay Versus Performance Disclosure
Amendment Takes a Prescriptive Approach to Rulemaking The disclosure of linkage between executive compensation and financial performance is the thrust of a new pay versus performance disclosure rule approved on Thursday, August 25, by the U.S. Securities and Exchange Commission. In effect for the…
Read More > 09.12.2022
Briefs
Investor Dissatisfaction on Executive Pay Continues to Rise This Proxy Season
With more investors voting “no” on Say on Pay (SOP) than ever before… The number of large-cap companies that have received votes of 70 percent or below is on track to be the largest since SOP was implemented in 2011. In this Farient Brief, Eric Hoffmann analyzes the state of…
Read More > 06.27.2022
Briefs
Distilling The SEC’s Landmark Climate Disclosure Proposal
The Securities and Exchange Commission (SEC) recently issued its much-anticipated proposed climate disclosure rules that would require public companies in financial statements to report their greenhouse gas (GHG) emissions, exposure to climate risks, and climate-related metrics. The new rules are a significant step forward in standardizing public disclosures on environmental measures.
Read More > 04.13.2022
Briefs
Farient Advisors Announces Appointment of Brian Bueno as ESG Leader
Farient Advisors (Farient), a leading independent executive compensation, performance and corporate governance consultancy, today announced the appointment of Brian Bueno as Environmental, Social and Governance (ESG) Leader. This appointment comes as investors increasingly push boards to incorporate ESG metrics and goals into executive pay plans, as new research from…
Read More > 03.29.2022
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