First, I want to make it clear that plenty of CEOs are paid way too much money, but most are probably paid in accordance with the value they deliver. But, that is a topic for another post. Let’s talk about how much CEOs get paid. I took a quick look at the CEO pay for...
Many of you may have read about Gravity Payments, the company in Seattle, Washington with the magnanimous CEO who decided to do the right thing. In April the CEO, Dan Price (great name for a comp article), decided to cut his own pay from $1Miliion to $70,000 annually and use the difference to provide raises...
On August 5, 2015 the SEC voted to approve a new rule on the disclosure of the ratio of CEO pay to that of the median employee. This rule was a requirement of the Dodd-Frank Law passed in 2010. The details of the rule and what companies must do to prepare for it are all...
The date: July 1, 2015. The place: Washington D.C. The situation: The SEC proposes rules for executive compensation claw back provisions required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The SEC has finally proposed the long-awaited rules for executive pay claw back. Rule 10D-1 describes who, what, when and how “erroneously awarded...
This post is a roundup of recent and impending activity in the world of executive compensation. Normally, this is the time of the year where we see the hand wringing and tearing of clothes that have come as a result of annual Say On Pay voting. But, let’s be honest, each year only 2% of...
A generous person gave three business partners $1 million and said they could use it however they wanted. The only caveat was that the business plan allocated 70% of the money to predetermined overhead. This could be reduced to as little as 55% if the partners planned and executed carefully. While all three individuals agreed...
We, the compensation professionals of planet earth, work hard to define the whys and hows of our pay programs. We build out details on our objectives for pay levels, definitions of peers, pay mix and plan details. We define the purpose of each pay element and its alignment to the company, shareholders, individuals and in...
