2020 Updates

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. ​

2020.04.28New 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.