2020.05.28 Executive Comp - Red Flag for Shareholder Litigation... Shareholder derivative litigation involving Skechers has settled, with $20 million of its past executive stock awards being cancelled. The settlement includes a commitment to have the compensation committee consider input from a compensation consultant. For what got the company in hot water, see Compensation Committee Governance.
2020.05.09 Smart Structures for Executive Compensation: The More Things Change ... It's been 15 years since I wrote an article that began: "the decision-making environment is right for awards that are formula driven, that vest based on future performance, and that impose postemployment risks of forfeiture for disloyal actions, such as joining a competitor or soliciting customers or employees." Rolling that forward to today, the best employers are taking one further step ... continued at Executive Compensation - Governance.
2020.05.01 Adjusting Performance Goals - Wrestling One Impediment. What if a company has established performance goals for annual bonuses or longer-term awards, and the underlying plan does not authorize a change in those goals? That is a question that is arising with some frequency. And here are some answers.
2020.04.28. New LTIP, Severance and Change in Control Survey Data. Not surprisingly, between 2x and 3x pay is the range for CEO severance in just over 80% of the top 200 public companies. Likewise, those multiples apply in 84% of the surveyed companies to ... new reports at LTIP Data, Severance Surveys and CIC Surveys. See generally: Topical Index for Executive Comp. Survey Data.
2020.04.30 Performance, Performance, Performance. Frederic W. Cook's Top 250 LTIP Report is rich with data about grant-making practices relating to stock options, restricted shares, and performance award. One stand-out data point indicates the extent to which better governance practices have shaped awards away from stock options toward performance awards (the latter being offered by 94% of surveyed companies). See LTIP Survey Data for more information.
2020.01.01 Updated FAQs from ISS - re executive compensation. The changes are mainly technical. See this checklist of problematic practices drawn directly from ISS's FAQs.
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