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CFO Corner: Say on Pay Campaigning and the 97% Rule
It’s proxy season and Say on Pay is once again on the minds of anyone involved in executive compensation. As of this past week, about 170 companies have reported their results and less than 2% have...
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Equity Compensation – Performance Earned Units (PEUs), The First Ingredient...
All too often the myriad types of truly performance-based equity get muddled together into a stew. Like other great equity compensation ingredients (RSS, RSU, ISO, NQSO) each type of performance equity...
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Executive Pay Can’t Be Fixed! But….here are 3 things to consider
Several times a year, I see articles and presentations discussing how to “fix executive compensation”. This presumes that executive compensation is some sort of monolithic thing. In fact, executive...
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Real Pay, Realizable Pay, Pay Ratios and Reality
Pay ratios are the most commonly used tool when discussing the unfairness between executive pay and that of the rank and file. Recently, on the PayScale Career News blog which caters to individuals...
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Switzerland Pay – Great for Employees, Less So for Execs
In the past several months, Switzerland has made some interesting compensation headlines. Swiss voters recently passed a referendum on executive compensation that is more far-reaching and restrictive...
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Equity Compensation – Performance Accelerated Units (PAUs), Old School...
As I mentioned in an earlier post, performance equity instruments still get lumped together like a bowl of mixed nuts. Of these instruments, Performance Accelerated Units (PAUs) are one of the easiest...
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The One Equity Compensation Trend to Rule Them All
Performance equity has taken a long journey. Initially, its use was inhibited by accounting rules that made it far more advantageous to grant equity with time-based vesting. Those rules went away at...
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Executive Compensation Calendar – When Should You Work on Specific Projects?
It’s that time of the year again. Proxy season is wrapping up. You are probably working at one of the 98% of public companies who passed their Say on Pay vote with flying colors. Or, you work at one of...
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Executive P4P: What Came First, the Chicken or the Egg?
It’s an age-old negotiation. Pay me more and I will perform. Perform better and I will pay you. So, what comes first, the payment or the performance? Hay Group’s Annual CEO Compensation Survey was...
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Zen and the Art of Executive Compensation
More than 20 years ago, I visited Japan and spent time at the famous Ryoan-ji Zen Rock Garden in Kyoto (go to the 1:00 mark). The garden is considered a masterpiece of its form as well as an enigma....
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Share Price Not Always Linked to Performance
Recently, Financial Times published an article titled “Share price windfall reignites debate over executive pay.” Reigniting a fire that has not died down for decades seems a bit much, but let’s talk...
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Now Playing –“The Statistics”
In our world of sound bites and summaries, statistics are playing an increasingly important role. They are the basis of infographics. They are used in catchy headlines. They provide support for...
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Sunlight: Disinfectant, or Growth Enhancer?
Justice Louis D. Brandeis once wrote the following: “Publicity is justly commended as a remedy for social and industrial diseases. Sunlight is said to be the best of disinfectants; electric light the...
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Are Your Compensation Programs No-DOMA Ready?
First, congratulations to everyone who can now legally experience what is the best thing about my life, marriage. A quick shout of support for those still fighting on this front. Second, over a month...
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Compensation Players, Coaches and Referees
The NFL pre-season is once again upon us. New rules, players, coaches and referees, means new mistakes and new opportunities for improvement. Perhaps it’s no coincidence that the NFL season occurring...
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What about the 399,500 other CEOs?
Many times, people who find out that part of my business is focused on executive compensation consulting ask how I can support “CEOs who are already making so much money.” I usually answer with a...
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Stock Options Won’t go the Way of the Dodo Bird
On August 27, 2013, there was an article in the Wall Street Journal titled “Last Gasp for Stock Options?” The writer, Emily Chasan, starts the article with this sentence: “Stock options are on the...
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162(m) – Created to Slow Public Companies, but a Real Accelerator for Start-ups
Twenty years ago, 162(m) was enacted by Congress. The purpose of this rule was to slow executive pay growth by capping the tax deductions on executive compensation at $1,000,000. There was an exemption...
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The Duckbilled Platypuses of Compensation
More than two years ago I wrote about “Defining Pay for a Compensation Unicorn”. A unicorn is a person with a skill set so specific and high level that it is hard to imagine them existing anywhere...
View ArticleAre there good resources for compensation data of privately-held companies?
On the WorldatWork Discussion Board, someone asked the following question: Are there any recommendations on sources to use for compensation data of privately-held companies (including executive...
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