SEC Readying New Company Workforce Disclosures, Gensler Says
By Bloomberg Law | May 13, 2021 | Read more
The SEC is preparing a plan for companies to report more information about their employees as it eyes new environmental, social, and governance disclosures. Partner Margaret Engel notes that companies have generally been light on metrics and have favored a more qualitative approach to workforce disclosures. According to a study she authored, most corporate disclosures on human capital rely primarily on a qualitative description of core values, programs, and practices.
Best Practices in Private Company Director Compensation Programs
By National Association of Corporate Directors | May 9, 2021 | Read more
As competition intensifies for attracting and retaining diverse and talented directors, private companies are reviewing the plan design and pay levels of their director compensation programs to compete for talent with their publicly traded peers. Partner Susan Schroeder shares four best practices in designing and implementing a new director compensation program: determine the primary objectives of the program, conduct internal and external assessments, decide which pay components to adopt, and calculate total cost of director pay program.
BlackRock Whacks Boards on Compensation Changes
By Agenda | May 7, 2021 | Read more
BlackRock, the world’s largest asset manager and one of many companies’ largest investors, has voted against compensation plans at several large companies this proxy season, including General Electric last week. Partner Matt Vnuk believes that the practices that investors and proxy advisors are being most critical of this year are not new — it’s just that there were more of them this past year. Senior Associate Ryan Colucci adds that some companies may still opt to adjust mid-cycle long-term plans if they were affected although these types of adjustments are drawing the most fire from investors.
What the Media’s Most Powerful Execs Were Paid in 2020: Did Pandemic Pay Cuts Have an Impact?
By Variety | May 7, 2021 | Read more
Partner Bertha Masuda comments on the catastrophic impact COVID has had on the media industry. In 2020, many companies responded to the shut down of movie theaters and theme parks with layoffs and furloughs. Now, as they release their annual reports and proxies, it becomes clear that executives at these same companies still rank among the nation’s highest paid executives.
Career Opportunity
CAP Senior Analyst
By Compensation Advisory Partners | Apr 19, 2021 | Read more
CAP has an exciting opportunity to join our team.
CFO Pay Rises as Their Companies Navigate Coronavirus Pandemic
By The Wall Street Journal | Apr 15, 2021 | Read more
Median pay for finance chiefs at the largest U.S. companies rose 7% during the 2020 fiscal year, largely driven by stock-based compensation. According to Partner Melissa Burek, the decision for boards to modify their pay plans amid the pandemic is not easy and requires good judgement. Approximately 30% of S&P 1500 companies that have held their annual meeting already modified their bonuses due to COVID.
CEO Pay Surged in a Year of Upheaval and Leadership Challenges
By The Wall Street Journal | Apr 11, 2021 | Read more
CEO pay kept climbing in 2020 as some companies moved performance targets or modified pay structures in response to the pandemic and accompanying economic pain. Principal Shaun Bisman notes that the number of changes seen in incentive plans is unprecedented. In some cases, investors have responded by withholding support for company pay practices in annual advisory votes.
Pay Ratios Poised for More Scrutiny This Proxy Season
By Agenda | Apr 5, 2021 | Read more
On the subject of pay ratio disclosures at companies that furloughed employees, Senior Associate Ryan Colucci cautions that the timing of furloughs and their duration will matter when it comes to deciding whether to include or exclude furloughed employees from the median calculation. He adds that it is perfectly reasonable to back up the determination date to later in the year if that makes it easier to calculate the median as long as a rationale is disclosed.
