Pre-IPO Compensation Planning: Preparing for New Investor Base and Market Expectations

By National Association of Corporate Directors | Jul 25, 2021 | Read more

CAP Partner Bertha Masuda shares with NACD Online what companies planning for an initial public offering (IPO) need to do to prepare their executive compensation programs for the transition to being a public company.

The CEOs of Top Publicly Traded Personal Lines Insurers that Got the Biggest Percent Pay Hike in 2020

By P&C Specialist | Jun 4, 2021 | Read more

Senior Associate Joanna Czyzewski explains that for the insurance industry, 2020 resulted in mixed performance with business-interruption claims, poorer investment results, and benefits of reduced accident frequency. This resulted in an absence of significant modifications to compensation programs when it comes to COVID-related adjustments. Partner Melissa Burek adds that of the companies that made incentive changes, 60% made annual incentive changes, 9% made long-term incentive changes, and 31% changed both incentive plans.

Career Opportunity
CAP Associate (New York/LA Office)

By Compensation Advisory Partners | Jun 2, 2021 | Read more

Compensation Advisory Partners LLC (CAP) has an exciting opportunity for an executive compensation consultant with 3 – 5 years of experience to join our team.

Career Opportunity
CAP Analyst

By Compensation Advisory Partners | Jun 2, 2021 | Read more

Compensation Advisory Partners LLC (CAP) has an exciting opportunity for an executive compensation consultant to join our team.

CEO pay rises to $12.7M even as pandemic ravages economy

By AP News | May 28, 2021 | Read more

Boards of directors had few precedents available to set pay packages as the global economy crashed due to the pandemic. Partner Melissa Burek addresses differences between the pandemic economy and the 2008 economic collapse. Additionally, Partner Kelly Malafis says that when deciding on the size of pay packages, boards of directors focus on performance.

Banks experiment with tying executive pay to diversity goals

By American Banker | May 24, 2021 | Read more

Partner Kelly Malafis notes that for now, most bank compensation committees will feel more comfortable awarding diversity and inclusion bonuses when they are attached to a range of improvement on certain diversity metrics, as opposed to meeting more specific targets. Principal Shaun Bisman says that this is really in the beginning stages where companies and boards want to see how these diversity and inclusion incentives are working before they set these more quantifiable goals.

Why CEO pay climbed in 2020 even as bank profits fell

By American Banker | May 21, 2021 | Read more

In 2020, bank boards and compensation committees relied less on numbers and formulas, and more on their perceptions of how well CEOs led their banks through the pandemic. Partner Kelly Malafis explains that some companies that had discretion built into their bonus plans were able to use a more holistic approach to determining CEO bonus pay. Others with entirely formulaic methods looked at measures such as relative performance to determine their results and in most cases adjusted results upward, thus lifting bonus pay. Principal Shaun Bisman adds that there could be even more use of discretion in bonus pay for 2021, as the timing of a full economic recovery remains unclear, making it hard to set financially based performance goals. He imagines that in two or three years the plans would look very similar to what they looked like pre-COVID.

Which bank CEOs received big raises, pay cuts in 2020

By American Banker | May 19, 2021 | Read more

Two factors played major roles in shaping compensation trends for bank CEOs in 2020. One was the COVID-19 pandemic, which led to big increases in loss reserves, in turn causing net income to fall at many banks. The other big factor was the ongoing wave of mergers and acquisitions, which increased the size of companies like First Horizon and First Citizens Bancshares. American Banker cites data compiled by CAP to examine which CEOs saw pay cuts and which saw substantial pay hikes last year.