Partners Dan Laddin and Eric Hosken recently published an article with Directors & Boards, exploring key themes that will shape executive compensation in 2025. They discuss the impact of the 2024 presidential election on regulatory priorities and how proposed tax cuts and tariffs could affect incentive plans. The article also examines shifts in ESG and DEI metrics in response to evolving policies, as well as the need to rethink the role of restricted stock in executive compensation strategies.
Partner Shaun Bisman was featured in Directors & Boards’ Q&A on ISS and Glass Lewis 2025 Policy Updates discussing key executive compensation policy changes. Shaun highlighted key policy updates relating to changes to performance-based awards, pay-for-performance evaluations, and equity pay mix considerations. He also discussed implications for boards as there is increased scrutiny on pay transparency, performance alignment, and proactive communication with shareholders. Lastly, Shaun covered best practices, emphasizing rigorous goal-setting, clear rationale for pay decisions, and robust disclosure in CD&As to meet evolving investor expectations.
Founding Partner Melissa Burek was featured in Directors & Boards’ article discussing CEO compensation and the Workforce at large after attending the “2024 Character of the Corporation”. Melissa emphasized aligning pay with company success drivers, shareholder value, and transparent communication with stakeholders. Her insights highlighted the importance of thoughtful, balanced compensation strategies.
Partner Margaret Engel was featured in an article discussing the Tornetta v. Musk decision and its potential impact on how the Elon Musk is paid. The article discusses potential changes to executive compensation planning, equity incentives to large stockholders, CEO pay magnitude, alignment between executive compensation and shareholder interests, and lessons from this case regarding good (and bad) governance.
Partner Eric Hosken participated in a panel discussing the advantages / disadvantages of total shareholder return (TSR) as a basis for executive compensation. The discussion took place at MLR Media’s Character of the Corporation conference.
Partners Eric Hosken and Dan Laddin discuss how succession planning, ESG, and the election season will affect compensation as we move toward 2025. The new year is off to a strong start, coming off a stronger-than-expected fourth quarter of 2023 and a positive start to the year in the stock market. The picture is not all positive though since 2024 is expected to be a highly charged political year with a contentious presidential election, uneven economic recoveries globally and continued conflicts in the Middle East and Ukraine. Uncertainty is something that compensation committees will continue to struggle with in 2024.
A CAP report detailing CEO pay levels among 50 companies with fiscal years ending between August and October 2022 was recently referenced to by Directors & Boards. The report revealed that median CEO total direct compensation was up 4% when compared to the same period in 2021. The report also revealed that overall fiscal year 2022 financial performance was up by approximately 10% while total shareholder return was down by 16%. This report was authored by Partner Lauren Peek and Principal Joanna Czyzewski. Read the full report here.
