Executive Compensation Consultants Serving Public and Private Companies Worldwide.

Research

2017  – Global Trends in Corporate Governance

Farient Advisors, in conjunction with its partners in the Global Governance and Executive Compensation Network (GECN), a select team of premier independent advisory firms specializing in compensation and governance challenges, undertook an unprecedented study covering 17 countries spanning six continents to gather insights into global corporate governance practices in three broad categories: Executive Compensation, Board Structure & Composition and Shareholder Rights.

2016 – NACD – Effective Practices for Goal Setting and Using Nonfinancial Metrics

Fortune 500 compensation committee chairs convened in February 2016 to consider effective practices for goal setting and use of nonfinancial performance measures in compensation plans at a meeting of the National Association of Corporate Directors (NACD) Compensation Committee Chair Advisory Council, cohosted with Farient Advisors.

Click here to download the Summary of Proceedings from the meeting.

2015 – NACD –  New Guidance for Compensation Committees

Selecting the appropriate mixture of performance metrics, setting aspirational yet realistic expectations for executives, and communicating the board’s rationale to investors can be difficult under the best of circumstances, but in today’s tumultuous environment these tasks have become even more challenging. These issues were the focus of discussion at the October meeting of the NACD Compensation Committee Chair Advisory Council. The council is comprised of Fortune 500 compensation committee chairs, regulators, and senior leaders from institutional investors.

Click here to download the Summary of Proceedings from the meeting.

2013 – Pay for Performance and Supplemental Pay Definitions

Farient Advisors, as fouding co-chair of the National Association of Corporate Directors (NACD) Executive Compensation Committee Chair Advisory Board, worked closely with NACD and Advisory Board members to develop pay definitions to establish a common language that companies and boards can use to assess and communicate the link between executive compensation and company performance.

2013 – Compensation Committee Chair Advisory Council Summary of Proceedings

On Nov. 4, 2013, NACD, Farient Advisors, and Gibson, Dunn & Crutcher co-hosted the fourth meeting of the Compensation Committee Chair Advisory Council in Washington, D.C. The session brought together compensation committee chairs from Fortune 500 companies with senior leaders from major institutional investors and the Securities and Exchange Commission (SEC) for candid dialogue on the challenges and issues currently facing the compensation committee.

2013 – Performance Metrics and Their Link to Value

In a study sponsored by the State Board of Administration of Florida, Farient explores the question: are companies choosing performance metrics that provide the most sustainable benefit to their shareholders? This groundbreaking research covers 1,800 companies, 24 industry groups, and fourteen years of data (from 1998 to 2011). It identifies the primary metrics used in executive compensation plans, overall and by industry, company size, and valuation premiums, and then tests these metrics to determine whether those being used have the highest impact on TSR results.

2012 – Pay Definitions: What Works Best in Pay for Performance Analysis

Farient analyzes the three most widely used alternative pay definitions – Realized Compensation, Realizable Compensation, and Performance-Adjusted Compensation (PAC). This detailed analysis will help compensation committees, management and shareholders determine which definition of pay makes the most sense in determining executive pay and performance.

2011 – Say On Pay: Identifying Investor Concerns

The Council of Institutional Investors have released a report by Farient Advisors analyzing investor motivations to vote against “say on pay” at companies where the proposal failed to receive majority support at 2011 annual meetings. It draws on data from 37 companies whose pay plans fell short of majority support between January and July 2011, as well as interviews with institutional investors, investment management firms, proxy advisers and solicitors, and company officials.

2010 – SEC Comment Letter on the Pay-for-Performance Disclosures under Title IX of the Dodd-Frank Act

On July 27 the SEC invited public commentary on various aspects of the Dodd-Frank Act. Farient is providing suggestions for the SEC to consider with respect to how companies could be required to disclose pay-for-performance

2010 – Farient Point of View

Implications of the Executive Compensation Provisions in the Dodd‐Frank Wall Street Reform and Consumer Protection Act.

2009 – The Directors & Boards Survey: CEOs and Executive Compensation

This survey revealed that corporate directors, executives and shareholders believe that excessive executive compensation is a significant issue. However, not surprisingly, most of the survey respondents do not feel as though more government intervention is the answer.

2009 – Corporate Board Member Research Initiative – All Eyes on Executive Compensation

Results of the 2009 Corporate Board Member/Farient Advisors Study of Executive Compensation Practices.

2009 – Assessing the Role of Compensation in Encouraging Risk: Farient Advisors’ Quantitative Approach