Vanguard Links CEO Comp to Reputational Risk

By Agenda | Mar 29, 2021 | Read more

Principal Lauren Peek says moves to consider reputational risk in comp plans have been “building” over the past few years. She believes reputation risk really started to gain traction in the height of the MeToo movement, when companies started to think about reputational risk just beyond financial risk to companies. She notes that 2020 was a year that had very similar themes when looking at the racial injustice protests seen over the summer.

CEO Pay Seesaws Under Pandemic Pressure

By Agenda | Mar 26, 2021 | Read more

Principal Lauren Peek discusses the disparate impact the pandemic had on different companies based on CAP’s review of 50 companies with fiscal year-ends between August and October 2020. Despite an across-the-board dip in median financial performance, total direct compensation at median for CEOs among early filers in 2020 rose 8% over 2019 comp. Peek explains that the increase is deceptive given the disparate impact the pandemic had on different companies.

Pre-IPO Equity Incentive Practices

By Compensation Standards | Mar 25, 2021 | Read more

Compensation Standards features CAP’s memo examining a sample of 20 high-profile tech IPOs from recent years to understand equity practices leading up to going public. The memo finds, among other insights, that options are still the favorite form of equity awards – but there’s been a shift to granting more RSUs, typically with double-trigger vesting based on both years of service and going public.

Starbucks Shareholders Reject CEO Pay Proposal in Rare Move

By | Mar 19, 2021 | Read more

CNN discusses the influence of proxy advisory firms on shareholders’ vote, citing findings from CAP’s report on ISS recommendations. The report found that in about 96% of cases when most shareholders voted against an executive pay proposal, ISS had advised to vote in that manner. ISS has recommended shareholders vote against compensation packages for approximately 12% of companies each year for the past decade.