September 30, 2013 Thoughtful Pay Alerts
“Say on Pay” at the Bay Area 150 – A Look at Year Three
One of the focal points of the 2013 proxy season has been the non-binding shareholder advisory vote on the compensation of a company’s named executive officers (the so-called “Say-on-Pay Vote”) required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Now in its third year, the Say-on-Pay Vote continues to serve as the “report card” on the effectiveness of a company’s...Read MoreSeptember 20, 2013 Thoughtful Pay Alerts
SEC Proposes Rules to Implement CEO Pay Ratio Disclosure Requirement
The Securities and Exchange Commission has taken action on the third major executive compensation-related provision of the Dodd-Frank Wall Street Reform and Consumer Protection, proposing rules to implement Section 953(b) of the Act, which requires public companies to compare and disclose the relationship between the annual total compensation of their Chief Executive Officer and the median of...Read MoreSeptember 20, 2013 Thoughtful Pay Alerts
SEC Proposes Rules to Implement CEO Pay Ratio Disclosure Requirement
The Securities and Exchange Commission has proposed rules to implement Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires public companies to compare and disclose the relationship between the annual total compensation of their Chief Executive Officer and the median of the annual total compensation of all their employees. This article summarizes the...Read MoreMay 3, 2013 Thoughtful Pay Alerts
Executive Pay Disclosure Trends of Emerging Growth Companies
In recognition of the one-year anniversary of the Jumpstart Our Business Startups (“JOBS”) Act in April, Compensia has examined the executive compensation disclosures of nearly 50 technology and life sciences companies that were eligible to take advantage of the streamlined compliance requirements of the JOBS Act for “emerging growth companies” during 2012 to determine the level of disclosure...Read MoreFebruary 4, 2013 Thoughtful Pay Alerts
Companies Should Verify Data For ISS “QuickScore” by February 15
Recently, Institutional Shareholder Services, the major proxy advisory firm, announced an overhaul of its corporate governance risk assessment tool, Governance Risk Indicators (“GRId”). Now titled “ISS Governance Quickscore,” this new database is intended to enable ISS’ clients to identify potential governance risks that may be present in their portfolio companies (which was the primary...Read MoreJanuary 7, 2013 Archived Alerts
Equilar Provides Opportunity to Update Peer Group Used in Glass-Lewis SOP Analysis
Earlier this year, Glass-Lewis & Co., Inc., the major proxy advisory firm, announced that, for purposes of its new “pay-for-performance” analysis, it would employ Equilar’s “market-based” approach (“Market Peers™”) to develop the peer group used in its analytical model. As you may recall, Equilar’s approach uses a company’s self-constructed compensation peer group and the peer companies of...Read MoreDecember 5, 2012 Archived Alerts
ISS Releases Guidance on Revised Peer Group Selection Methodology
As discussed in our recent Thoughtful Pay Alert on Institutional Shareholder Services’ updates to its U.S. corporate governance benchmark policy guidelines for 2013, ISS has revised its selection methodology for the peer group that it will use in assessing the alignment of a company’s executive compensation with corporate performance. One of these revisions gives greater weight to the...Read MoreDecember 5, 2012 Archived Alerts
ISS Issues 2013 Policy Updates
Institutional Shareholder Services, the prominent corporate governance advisory services firm, has updated its U.S. corporate governance benchmark policy guidelines for 2013. In the aftermath of the criticism it received with respect to its new “pay for performance” methodology for evaluating the link between corporate performance and executive pay (which is a key consideration in how ISS...Read MoreDecember 4, 2012 Thoughtful Pay Alerts
Employee Stock Plan Proposals at the Bay Area 150
Although the spotlight during the 2012 proxy season was clearly focused on the second year of shareholder advisory votes on executive compensation (“Say-on-Pay”), employee stock plan proposals (that is, proposals to either adopt a new employee stock plan or increase the share reserve for an existing plan) were also common at public technology and life sciences companies. As in prior years,...Read MoreNovember 19, 2012 Thoughtful Pay Alerts
New Form of Say-on-Pay Litigation Appears
In recent months, a new form of Say-on-Pay lawsuit has appeared. These suits, which are filed as “class actions” after a company has filed and disseminated the definitive proxy materials for its annual meeting of shareholders, seek to enjoin the company from conducting its scheduled shareholder advisory vote on the compensation of its named executive officers (a “Say-on-Pay” vote),...Read MoreOctober 18, 2012 Thoughtful Pay Alerts
National Exchanges Propose Rules for Compensation Committees
Recently, the New York Stock Exchange (“NYSE”) and the NASDAQ Stock Market (“NASDAQ”) proposed revisions to their listing standards regarding the independence of directors serving on board compensation committees and the independence of the advisers to such committees. The eventual approval of these proposals will complete the rulemaking required by Section 952 of the...Read MoreOctober 18, 2012 Archived Alerts