News

Dimon’s big pay package gets thumbs-down from JPMorgan shareholders

By American Banker | May 17, 2022 | Read more

American Banker quoted Principal Shaun Bisman in their article on JPMorgan’s low Say on Pay support. He explained that there are several reasons as to why JPMorgan received such low support. Some reasons could include negative recommendations from Proxy Advisory Firms Glass Lewis and Institutional Shareholder Services (ISS) or that Jamie Dimon and Daniel Pinto received one-time stock option awards not tied to performance. Finally, despite JPMorgan returning less to shareholders than the S&P 500, both Dimon and Pinto received Total Compensation increases along with the one-time stock option awards.

In a Hot Job Market, Companies Hand Out Big Awards to Retain Key Executives

By The Wall Street Journal | May 17, 2022 | Read more

Partner Kelly Malafis was quoted in a Wall Street Journal article that discussed how companies are paying out special awards to retain executives in this tight labor market. She explained in the article that it is much easier to pay executives these special awards if the company is performing well. However, if the company is performing poorly and/or the stock price is decreasing, then these award might be harder for investors to digest.

Long-Term Incentive Plans: Payouts and Performance Alignment

By Harvard Law School Forum | May 12, 2022 | Read more

Partner Melissa Burek, and Principal Michael Bonner wrote a report on long-term incentive plans that was published by the Harvard Law School Forum on Corporate Governance. The report analyzed 120 companies with a median revenue of $36 billion. CAP looked at the long-term incentive performance cycles that ended from 2015 to 2020 for these companies. In the report they unveil their main findings from this analysis.

Performance Bounced Back – CEO Pay Up

By Harvard Law School Forum | May 9, 2022 | Read more

The Harvard Law School Forum on Corporate Governance recently published findings from the popular CAP Early Filers report authored by Principals Lauren Peek and Joanna Czyzewski. In this report, CAP reviewed Chief Executive Officer (CEO) pay levels among 50 companies with fiscal years ending between August and October 2021 (defined as the Early Filers). CAP found that 2021 was definitely a “bounce back” year where median CEO pay was increased by 19%. This large increase in CEO pay is mostly due to a dramatic year over year increase (+73%) in the annual incentive payout since base salaries were flat at median and the grant-date value of long-term incentive increased 11%.