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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
Briefs
Forbes – Good Governance: Do Boards Need Cyber Security Experts?
While opinions differ on the need for cybersecurity experts on certain boards, there is a general consensus among management, boards, and investors alike that this need is growing. Given this trend, I spent time with Bob Zukis. Bob is the founder and CEO of the Digital Directors Network, professor of Management and Organization at the USC Marshall School of Business, retired PwC Advisory Partner, and author and speaker on digital governance and the impact of disruptive technology on business strategy.
Read More > 08.20.2019
Briefs
Forbes – Is Net Promoter Score Just A ‘Feel Good’ Metric?
Recently there’s been quite a bit of buzz around net promoter score (NPS) to measure how satisfied customers are with the services they are receiving. Since many clients are asking about NPS, I thought it made sense to interview Nancy Smith for this week’s PayWatch blog on Forbes.com.
Read More > 08.20.2019
Briefs
Fortune – Remember Options Backdating? Nissan Gets Caught Using a Very Old CEO Pay Trick
By Erik Sherman After more of than a year of one corporate scandal after another—faked emissions tests, claimed improper payments, executive financial misconduct, and even arrests—Nissan may face yet another problem. CEO Hiroto Saikawa reportedly received…
Read More > 06.11.2019
Briefs
Danger, Danger, No Cyber Ranger: Why Boards Need More Cyber Experts
The notification of a data/privacy breach from your company is never well received by stakeholders. After all, no one wants their social security number, healthcare and other private information available for public consumption. Yet, almost daily there is a headline story of personal data inadvertently exposed by employees or hacked…
Read More > 05.21.2019
Briefs
Forbes – When Passive Investors Become Active And Other Tales From The Street
By Robin Ferracone Almost three years ago to the day, I interviewed Moira Conlon, CEO and president of Financial Profiles Inc., on the topic of “How to Best Communicate with Shareholders.” Conlon has been involved with investor relations and financial public relations for more than 25 years. She started…
Read More > 05.17.2019
Briefs
Forbes – Dare To Be Different – The Case Of Amazon.com
By Robin Ferracone I recently wrote about how compensation plans seem too homogenized. The reason for this is generally attributed to proxy advisors, and to some extent, investors themselves who apply the standard, “check off the box” criteria for evaluating executive compensation plan design. Companies adhere to such standards because…
Read More > 05.15.2019
Briefs
Forbes – How Will EVA Change Performance Metrics, If At All?
By Robin Ferracone This post originally appeared on Forbes.com A Once-Popular Performance Metric May Be Returning – and It Has Implications for Executive Pay EVA (Economic Value Added) may be making a comeback as a performance measure for companies, and this matters for compensation governance. Though popular in…
Read More > 04.30.2019
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