Some Comp Committees Are Getting Creative with LTIs
By Agenda | Nov 20, 2023 | Read more
Principal Shaun Bisman was quoted in Agenda’s recent article discussing how companies are getting creative with LTI plans. Bisman sheds light on the fairly uncommon approaches he’s seen and forecasts bonuses to pay at or below target.
The CEO Pay Ratios You Should Really Be Tracking
By Agenda | Sep 25, 2023 | Read more
Joanna Czyzewski discusses how monitoring executive pay ratios can be a helpful tool in managing your talent strategy. CAP reviewed CEO and other named executive officer pay across S&P 500 for the most recent fiscal year and discovered at median, CEO pay was 2.3x the next most highly paid NEO. For every $1.00 paid to the next most highly paid NEO, the CEO was paid approximately $2.30.
A “Governance Audit” for Board Prospects
By Boardroom Insider | Sep 11, 2023 | Read more
Eric Hosken, a partner at CAP, was quoted in Boardroom Insider discussing how comp committees should evaluate risks when creating executive pay plans. Eric mentions that the compensation committees may closely govern the NEOs, but those lower in the organization just get reported up to the board and is an area a company may face large potential risks. Hosken urges committees to continue to ask questions to the company comp team or consultant to better gauge “what-could- happen” scenarios especially in times of economic uncertainty.
Boards Set to Resume Raises for Leadership Roles
By Agenda | Sep 5, 2023 | Read more
Partners Dan Laddin and Matt Vnuk were quoted in Agenda’s recent article discussing Director Pay research. Dan and Matt discuss the growing demands of Board leadership roles and the potential increase of retainers. They mention that lead director pay has moved a little more aggressively than board chairs but some boards are reluctant to address below-market pay for individual roles as it could cause the company to stand out for the wrong reasons. Generally, directors need to know the increase is reasonable from a market perspective.
Discretion in Incentive Plans: Taboo or a Must?
By Bank Director | Aug 31, 2023 | Read more
Partner Kelly Malafis, Principal Mike Bonner, and Principal Shaun Bisman shed light on how discretionary incentive plans can enhance pay and performance relationship when used correctly. Discretion provides the compensation committee with the flexibility to make decisions that reflect the overall performance of the bank while considering the impact of external factors on performance results and strategic accomplishments that may not lend themselves to formulaic assessments. They suggest every bank should consider if there is a role for discretion in their plans to optimize alignment between pay and performance.
Say on Board Pay? New Settlement Offers Lessons on Director Comp
By Agenda | Aug 28, 2023 | Read more
Partner Matt Vnuk and Associate Kyle White were quoted in Agenda’s recent article discussing Tesla’s recent board compensation settlement. Tesla’s board of directors recently agreed to turn over $735 million and make their non-employee director compensation contingent on an annual vote from unaffiliated shareholders. The concessions are part of a proposed settlement to end claims that directors “grossly” overpaid themselves. They mention that as a best practice, directors should strive to compensate themselves in line with other similarly sized companies, which is likely to result in less “push back”. Directors do not want their compensation to be a distraction to the organization.
DEI Comp Metrics in Question After Harvard Ruling
By Agenda | Aug 25, 2023 | Read more
Principal Shaun Bisman was quoted as in Agenda’s recent article discussing the Supreme Court’s recent decision to strike down race-based college admissions at Harvard. Shaun mentions that companies need to determine if they are willing to support these goals in compensation, if they can adequately measure progress, and to what degree do they want to communicate and hold executives responsible for progress.
Comp Committees Sizing Up Bonus Discretion Amid Performance Woes
By Agenda | Jul 31, 2023 | Read more
Partner Kelly Malafis and Principal Shaun Bisman were quoted in Agenda’s recent article discussing discretionary bonuses amid performance woes. Bisman sheds light on the discussions about the potential recession that have been ongoing for the past 12 to 18 months. He believes it’s too early to tell if there is going to be a recession or not, but compensation committees need to focus on business as usual and focus on shareholder alignment. Malafis shares that the July or August meeting is often the time for committees to hold discussions about performance measures and incentive plan design for the following year.
