Tag Archives | pay

Executive Compensation: Its Complicated

Andrew Liazos, writing for CFO magazine, argues that a law enacted years ago in response to Enron poses new tax risk for deferred compensation in that Section 409A could inhibit desirable restructuring of executive pay in response to possible “say on pay” no votes. A 2009 notice from the IRS granted special relief to TARP […]

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Comments on SOP Advice: Rolling In

Sometimes the comments are as informative as the original post. The United States Proxy Exchange asked for comments on their/our draft say-on-pay voting guidelines aimed at retail investors. So far, that plea for help has attracted comments from growing list leading thinkers in the investment community. Thanks to each of you for taking the time […]

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Stock-based Comp Dis-aligns Shareowners & Mgt

Writing in the Harvard Business Review, Roger Martin from U. of Toronto explains that CEOs are rewarded for share price volatility not performance. (The Nasty Truth about CEO Pay, 6/3/2011) The financial crisis worked out great for them. Martin explains with great tables comparing the returns for a CEO, whose company performed with the averages, […]

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Davita (DVA): How I Voted

Davita (DVA) is one of the stocks in my portfolio. Their annual meeting is coming up June 6. ProxyDemocracy.org had four funds voting. MoxyVote.com had two funds and two consolidations. Checking the Summary Compensation Table, it appears CEO/Chair Kent J. Thiry was paid more than $14 million. Using the United States Proxy Exchange (USPX) released draft guidelines, I voted against most […]

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Biogen Idec (BIIB): How I Voted

Biogen Idec (BIIB) is one of the stocks in my portfolio. Their annual meeting is coming up June 2. ProxyDemocracy.org had five funds voting. Checking the Summary Compensation Table, it appears former CEO/Chairman James C. Mullen was paid more than $20 million and current CEO George A. Scangos was paid $9.4 million.  Using the United States Proxy Exchange […]

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How I Voted: Home Depot

Home Depot (HD) is one of the stocks in my portfolio. Their annual meeting is coming up June 2. ProxyDemocracy.org had five funds voting. Checking the Summary Compensation Table, it appears CEO/Chair Francis S. Blake was paid about $10.5 million. Using the United States Proxy Exchange (USPX) released draft guidelines, I am voting against most pay packages over […]

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Google: How I Voted

Google (GOOG) is one of the stocks in my portfolio.  Their annual meeting is coming up June 2. ProxyDemocracy.org had several funds voting. Although I reviewed how they voted, my votes didn’t align with any of the funds. Checking the Summary Compensation Table, it appears two senior vice presidents (Patrick Pichette and Nikesh Arora) each got […]

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Bogle Spinning in His Grave: Vanguard, a "Pay Enabler"

No, he isn’t dead but he might as well be as far as his ability to influence Vanguard, the giant mutual fund he founded. John Bogle wants funds to introduce resolutions at companies requiring a 75% shareowner vote in order to make political contributions. Yet, Vanguard has never introduced a single shareowner resolution anywhere that […]

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Exxon Mobil: Voting Recommendations

AFSCME and RAM Trust urge shareowners to rein in CEO Pay, implement governance improvements at their May 25 meeting. AFSCME and RAM Trust recommend: Against ratifying executive pay (Item 3) For One Year frequency of the advisory vote on compensation (Item 4) Adopt a policy that the XOM Board Chair be an independent (more…)

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Talbots: How I Would Have Voted

Talbots (TLB), was one of the stocks in my portfolio. Their annual meeting is coming up May 19. I didn’t realize I had sold it until I went through how I would have voted, so I’ll post it up. ProxyDemocracy.org had only one fund voting, CBIS.  MoxyVote.com had no voting (more…)

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Scripps Networks: How I Voted

Scripps Networks Interactive (SNI), is one of the stocks in my portfolio. Their annual meeting is coming up May 18. ProxyDemocracy.org had two funds voting, CBIS and AFSCME.  Checking the Summary Compensation Table shows the CEO/Chair, Kenneth W. Lowe, was paid about $8.3 (more…)

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Video: Abe Friedman on CEO Pay

CEOs at the biggest U.S. companies saw their pay jump sharply in 2010, as boards rewarded them for strong profit and share-price growth with bigger bonuses and stock grants. The median value of salaries, bonuses and long-term incentive awards for CEOs of the 350 biggest companies (that filed proxies between May 1, 2010, and April […]

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Nutrisystem: How I Voted

Nutrisystem, Inc. (NTRI) is one of the stocks in my portfolio. Their annual meeting is coming up May 12. Today is the last day to vote my proxy on the MoxyVote.com platform. ProxyDemocracy.org had one fund voting when I looked yesterday (CBIS). MoxyVote.com had no recommendations.  I see on the Summary Compensation Table that CEO/Chairman Joseph M. Redling was paid $5 […]

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13th Nay on Pay

Stewart Information Services has become the 13th U.S. company to fail to win majority support during a “say on pay” vote this year… Investors also withheld majority approval from a compensation committee member, W. Arthur Porter, and withheld more than 44 percent support from four other directors… While the small-cap company has lagged its industry […]

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CorpGov and Exec Pay

GovernanceMetrics International recently sampled large corporations and found that CEO pay jumped 27% in 2010 to a median of $9 million. According to William Lazonick, professor at the University of Massachusetts, in 2010 the S&P 500 jumped 12.8%, capping a two-year gain of 39.3%. Companies in the S&P 500 boosted profits by 47% in 2010, […]

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Another Pay Package Rejected

With my decision to vote against all pay packages above the median, I am voting against more than ever. Apparently, I’m not alone. Others are waking up as well. Here’s part of a report from Ted Allen of RiskMetrics/ISS from last week: This week, Cogent Communications Group failed to get majority support from investors on […]

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Hess: How I Voted

Hess is one of the stocks in my portfolio. Their annual meeting is coming up May 4. Today is the last day to vote on the  MoxyVote.com platform. ProxyDemocracy.org had two funds voting, covering all the issues. MoxyVote.com has four advisors or compilations of advisors offering opinions. I voted on the MoxyVote.com platform and went […]

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Excess-Pay: Beyond the 2% Solution

Excess executive pay can impose substantial costs on companies and shareowners even if manipulation or misconduct isn’t involved. Executive pay is the biggest lightening rod in corporate governance, prompting Dodd-Frank to include clawback requirements, mandatory say on pay, and say when on pay votes, as well as the coming ratio between executive pay and the […]

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How To Steal a Corporate Election

There are plenty of ways to steal an election. Some require guns. Others depend on bribes. Perhaps the simplest involve misleading ballots. For its corporate election this year, American Tower Corporation (AMT) has produced a humdinger. Item 04 of their ballot (technically a VIF; I will explain this legal nicety some other time) gives shareowners […]

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Search Continues at footnoted.com for Another Frugal CEO

Frugal gourmets? Yes. Frugal CEOs? Not so much. I really enjoy Michelle Leder’s posts at footnoted* and was stopped in my tracks with her recent headline that appeared to announce that she had found another frugal CEO, aside from Warren Buffett.  The proxy filed by Dresser-Rand (DRC) indicated they had “agreed to purchase Mr. Volpe’s […]

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Exchanges to Adopt Compensation Standards

The Securities and Exchange Commission is proposing rules that will direct the New York and other national securities exchanges to adopt listing standards regarding the compensation committee of a company’s board of directors, as well as its compensation advisers. The rules are required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. In establishing […]

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Aspirational Pay for CEOs

Goodyear CEO, Richard Kramer, saw a 69% rise in his annual compensation to $8.5 million in 2010, according to an Associated Press calculation from a regulatory filing. The company reversed a 2009 decision to freeze executive officers’ salaries, Bloomberg reports. Meanwhile, the largest US tire maker reported a loss of $216 million for 2010, which included […]

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Fix CEO Compensation by Broadening Incentive Pay

The defenders of executive compensation argue that senior executives make the most significant contribution to a company’s success; ergo, outsize compensation is justified. But the NBER Shared Capitalism Research Project has shown the opposite: Distributing rewards across the corporation—sharing them with workers—is the most efficient way of making businesses more successful. Motivated employees are more […]

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Are High Paid CEO$ Looking for Acceptance?

People who feel more secure in receiving love and acceptance from others place less monetary value on their possessions, according to new research from Edward Lemay, assistant professor of psychology at UNH, and colleagues at Yale University. Lemay and his colleagues found that people who had heightened feelings of interpersonal security — a sense of […]

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It Takes a Daughter

Male CEOs in Denmark who have a daughter are more apt to close the gender pay gap at their companies, reports the Wall Street Journal. Overall in Denmark, there is a gender wage gap of 21.5 percent. But the birth of a daughter to a male CEO caused that gap to close by 0.5 percentage […]

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Shareowners Going "Off the Reservation" on SWOP

Of 95 companies that held say-on-pay votes as of Feb. 25, 93 had favorable votes. The vast majority of those won more than 90 percent of the votes cast, according to an analysis of the first month of proxy filings under the final Securities and Exchange Commission rules by Schulte Roth & Zabel. Companies, however, […]

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Addressing CEO Pay

Regarding CEO pay, Nell Minow recently wrote, “there is a little flicker of light at the end of the long, dark tunnel of outrageous pay.” Her signs of hope: Required advisory “say on pay” (SOP) vote. Last year after a “no” vote,  Occidental Petroleum’s board reduced the pay package for CEO Ray Irani and announced […]

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Star Power Economy May Lead U.S. to Ruin

You want to win elections, you bang on the jailable class. You build prisons and fill them with people for selling dime bags and stealing CD players. But for stealing a billion dollars? For fraud that puts a million people into foreclosure? Pass…  make them pay a fine instead. But don’t make them pay it […]

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Founders Directors: Better Board Monitoring

Feng Li and Suraj Srinivasan examine CEO compensation, CEO retention policies, and M&A decisions in firms where founders serve as a director with a non-founder CEO (founder-director firms). They find that founder-director firms offer a different mix of incentives to their CEOs than other firms. Pay for performance sensitivity for non-founder CEOs in founder-director firms […]

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