Executive Compensation Week in Review: August 22, 2014

Executive Compensation Week in Review: August 22, 2014

August 22 2014

PDF2SH&P: Director Compensation Among Top 200 Companies Increased +2.7% in 2013
Steven Hall & Partners recently completed the ninth annual study of compensation paid to non-employee directors at the largest 200 U.S. public companies.  We find that in 2013 total compensation paid to non-employee directors rose +2.7% over 2012 levels, to a median of $268,333.  

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SH&P: ISS Launches New Equity Plan Data Verification Portal
Institutional Shareholder Services, Inc. (ISS) recently announced a new Equity Plan Data Verification portal to provide U.S. companies including an equity plan on the ballot in any proxy statement filed after September 8, 2014 the ability to verify key data points underlying ISS’ evaluation of the plan.

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SH&P: Say on Pay Voting Results
As of August 20, 2014 3,009 companies have held Say on Pay votes in 2014.

  • 57 companies (1.9%) have failed with an average 60% ‘Against’ vote
  • 71% of companies have received a greater than 90% ‘For’ vote
  • Average vote among all companies
    • 90.3% ‘For’ vote
    • 8.1% ‘Against’ vote
    • 1.6% Abstain

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Bloomberg Businessweek: How Sudden CEO Deaths Help Us Understand Executive Compensation
Here’s a slightly morbid take on executive compensation.  Two finance professors recently teamed up to try to determine how much executives are worth to their companies by reviewing market movement and compensation for about 150 public company executives who died suddenly.  Their conclusion: For every dollar in extra value that the average dead executive delivered to her company, she was paid 71¢.

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Inside Counsel: Pay for Performance Trend Impacts Many GCs
Like other C-suite executives, many general counsels are finding their compensation affected by the recent uptick in pay-for-performance initiatives.

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WorldatWork Video: The CEO Pay Ratio: Possible Effects on Companies and Compensation Professionals
Don Lindner of WorldatWork discusses the CEO pay ratio disclosure and the challenges companies will face when calculating and communicating the number with Stephen M. Eliseo, CCP, Director, Executive Compensation, Johnson & Johnson, and Steve Pennacchio, CPA, JD, Senior Vice President Total Rewards, Pfizer Inc.

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