Stories Below come from our Media Partner 3BL Media - Click their logo or any of the stories for more information
Executive Compensation, Trends, Executive Compensation Survey, Plans
Executive Compensation Introduction
Updated January 2011
The issues surrounding executive compensation – and especially CEO pay -- have been the topics of much discussion in Board Rooms, at Annual Shareholder Meetings and in the media, After a decade of intense debate, efforts to control executive compensation ((under Federal Law) took center stage when the U.S. Department of the Treasury issued interim final rules for reporting and recordkeeping requirements under the executive compensation standards of the Troubled Asset Relief Program (TARP) in January 2009. For the first time, the Federal government was taking a role in setting the compensation at private corporations. The actions resulted in an appointment of an Executive Compensation Czar within the Treasury Department to review compensation packages for companies receiving Federal assistance.
The effort did not stop here; further regulations are to follow with the enactment of the Dodd -Frank Financial Reform Legislation adopted in the Spring of 2010. This comprehensive package of “reforms” is now the focus of new regulations (that have to be developed implementing rules of the road). Unless the 112th Congress repeals parts of the law dealing with exec comp, the Federal government will have some kind of role in the issue. This has been welcomed by activist investors concerned about executive compensation policies and practices, especially at under-performing companies with outsized exec compensation.
In the worst cases, the focus of executive compensation packages has been upon corporate boards that are accused of being unrealistic, indifferent and in collusion with CEOs. What became the worst criticism was the revelation that too many agreements did not tie compensation with company performance.
“Say-on-Pay” became the rallying cry of shareholder groups and social and proxy activists as the hammer and anvil were hot and ready for hammering out reform. The Securities and Exchange Commission enacted rules for publicly-held companies to finally give a voice to shareholders through the proxy process on executive compensation. While the votes are not binding, they do serve to create an atmosphere of greater transparency and accountability of corporate boards to their shareholders.
Still the debate over the rules goes on; matters related to CEO compensation will continue to be the focus of this section. Whether you are located in the “C” suite or are a Corporate Secretary, Board Member, Investor Relations professional, shareholder or activist, Hot Topics Executive Compensation should be a daily stop for news, commentary and research.
Note: The Editors form no judgment about the level of pay and specific compensation of Chief Executive Officers and others in the “C” Suite. The purpose of this section is to fully air the issues surrounding exec compensation issues at shareholder-owned companies.
How much should a CEO or the top executive officers of a publicly-owned corporation be paid? What is a “fair” compensation? Especially when corporations are laying off thousands of workers and outsourcing work to distant lands? When the middle class is under attack – see CNN Lou Dobbs’ commentary on this? The issue of exec comp has become a burning question with an array of forces on all sides of the issue. When the stock market is doing well and “all boats are rising,” the issue is not as much in focus as when companies (or a single firm) is underperforming and the executive compensation is seemingly out of whack. Out of control. Disproportionate to performance. Unrelated to reality. And other battle cries by investor activists, public officials, journalists, advocate organizations, etc.
Consider the case of Home Depot, where the share price fell as the CEO’s pay package rose. Saying goodbye to the CEO, Mr. Nardelli, cost HD more than $200 million. Consider the exiting of the Wonderful Wizards of Wall Street, and their departure comp packages – totaling in the hundreds of millions’ of dollars – as the wreckage they’ve left behind (in the form of sub prime disaster loan portfolios) causes real pain on Wall Street, and on Main Street. We still don’t know the damage they caused with their financial wizardry – but the carnage is felt when home foreclosure rates increase dramatically, as they have over the past year.
So – what is a fair price for the Top Man (and a tiny handful of Top Women)? You’ll find news, commentary, research and other useful content here in this Hot Topic subsection of Accountability Central, as well as in various content sections and subsections. (See Corporate Governance, Shareowner Activism, Socially Responsible Investment, and other silos.)
Consider this as you formulate your own positions on the pay issues:
Enough highlights and commentary – we invite you to follow the often-heated discussions and public debate on executive compensation here in the pages of Accountability Central.
“…People will be accountable and responsible…”
President Barack Obama – on CEO Comp – February 4, 2009
Latest on Executive Compensation
July 19, 2016 The 10 Public University Presidents With The Highest PaySource: Forbes
A report released by The Chronicle of Higher Education today ranks 259 chief executives at 236 public colleges and systems across the nation, and Khator stands at the top of the list along with four other public university heads...
June 30, 2016 An Extraordinary Anomaly: Executive CompensationSource: Forbes
In general my view on compensation in publicly traded U.S. companies is quite poor. To me this isn’t just a matter of conscience but a fiduciary issue that all shareholders should care about. Management – and the respective...
June 16, 2016 Executive pay in spotlight at shareholders meetingsSource: Nikkei
TOKYO -- A key focus for investors at the upcoming Nissan Motor general shareholders meeting this year is how much the automaker paid President and Chief Executive Officer Carlos Ghosn for the year ended March, as the company...
June 15, 2016 6 CEOs with excessive executive compensation packagesSource: Bankrate
Yahoo's business troubles not only puts CEO Marissa Mayer under the harsh glare of the shareholder spotlight, it highlights the issue of sky-high executive compensation packages when the CEO is heading for the door.
Source: Blue & Green Tomorrow
The pay gap between men and women working in the corporate responsibility and sustainability (CRS) sector is closing and more women are now employed in the top jobs. That’s according to the sixth edition of the Corporate...
Source: Smart Business
Finding great candidates to fill executive positions is inherently difficult. Though quality candidates can be found, companies tend to lose their top pick because they can’t meet a candidate’s compensation expectations.
At a time when three out of four adults believe CEOs are overpaid, the directors of CBS, Comcast, Discovery, Disney, Fox, Time Warner, and Viacom continued last year to lavish their chiefs with some of corporate America’s largest...
May 17, 2016 Here's A Major Reason Why Big Banks Won't Break upSource: Fortune
“Bank executive compensation is closely and positively related to the size of the institution, but not generally related to profitability.”
Source: Washington Post
The gender pay gap is a persistent phenomenon, research shows, affecting women ranging from young female college graduates to mid-career mothers to even groups of top executives.
May 9, 2016 Executive pay ‘rubber stamping’ rifeSource: Financial Times
According to several non-profit groups, and a handful of outspoken fund managers, shareholders are fundamentally unable to rein in excessive pay at the biggest companies.
|HOME | ABOUT THE SITE | REGISTRATION INFORMATION | VOICES: FEATURED COMMENTATORS AND BLOGGERS | SPECIAL SECTIONS|