By Agenda | Dec 5, 2022 | Read more
Partner Matt Vnuk and Principal Bonnie Schindler were quoted in a recent Agenda article discussing how bankers expect a big drop in bonuses this year. Schindler explains how 2021 was a record year for investment banking compensation so there will be quite a shift for this year. Vnuk explains how boards may need to allocate more time to discussing a range of pay-related matters in light of new regulations and guidance from the SEC and Department of Justice that should affect design compensation plans. Going forward, directors may want to have advance conversations with executives and top performers to convey some of the changes and the expected impact on compensation.
By Directors & Boards | Nov 21, 2022 | Read more
Partner Eric Hosken recently participated in a Q&A with Directors & Boards. In this interview, Eric answered several questions regarding the new clawback rules that the SEC approved in October 2022. The SEC initially proposed these rules back in 2015. You can find additional information about the new policies here.
By Agenda | Nov 7, 2022 | Read more
Partner Kelly Malafis and Principal Roman Beleuta were quoted in the recent Agenda article discussing increased CFO salaries in the past year. A CAP report showed how 7% more CFOs received base salary increases at the largest companies compared to the prior year. Malafis shares that the trend isn’t unusual and that salary increases are about remaining competitive in the market so that salary doesn’t become a distraction. Beleuta explains how median total compensation for CFO’s increased by 17% year over year and the increase was driven by higher bonuses and long-term incentive payouts. The large total compensation increases are not expected to continue in 2022 but retaining key finance talent will require more than just a focus on compensation.
By Bank Director | Nov 4, 2022 | Read more
In this article, Founding Partner Kelly Malafis, Principal Shaun Bisman, and Principal Mike Bonner address bank compensation committees. They list three issues that bank compensation committees should focus on: the rising cost of talent, the uncertain economic outlook, and the link between environmental, social, and governance (ESG) issues and human capital and compensation.
By The Wall Street Journal | Nov 1, 2022 | Read more
Partner Sue Schroeder was recently quoted in a recent Wall Street Journal article about New York’s pay transparency law. The new measure requires all New York employers to list pay on job postings, along with internal transfer or promotion opportunities. Schroeder explains how pay will be all over the map since it is something that has been done behind the scenes for years. She explains the complexity behind pay determination and how most large companies have roughly 15 salary grades within their pay programs.
By Bertha Masuda, National Association of Corporate Directors | Oct 23, 2022 | Read more
At this time, many boards are focusing on the annual operating plan (AOP) for 2023. Projecting financial performance may be difficult given continuing supply chain issues and market volatility, inflation, and a tight labor market in certain sectors. For private companies, there is added pressure to get the AOP right. Private companies often use the AOP as the target for the annual bonus plan and for shareholder distributions. Here’s how private companies can structure the appropriate bonus program and goals for 2023.
By Private Company Director | Oct 18, 2022 | Read more
As competition intensifies for attracting and retaining diverse and skilled directors, private companies are reviewing board member pay levels and plan design in order to be competitive with their publicly traded peers. This article discusses trends in director pay levels from CAP’s recent survey and offers insights into board compensation plan design. Using this external market data from CAP’s survey in conjunction with an understanding of the company’s and board’s unique situation, private companies are able to design effective and competitive board compensation plans.
By Harvard Law School Forum | Oct 11, 2022 | Read more
A CAP report was recently published by the Harvard Law School Forum on Corporate Governance. The report details the Private Company Board Compensation and Governance Survey that CAP and Family Business and Private Company Director magazines conducted this year. Board members at privately held and family-owned companies play an important role in governance and oversight and this survey adds insight on how these members are compensated. It also addresses the data deficiency on private company board pay. This survey was conducted and published by Partners Bertha Masuda and Susan Schroeder and Principal Bonnie Schindler. Harrison Evans and Gabriel Brown also provided analysis for this report.