The latest reporting, opinion and research on executive compensation. We don’t necessarily agree with it all, but we provide it here for consideration.

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Week of
September 21, 2015

Quick Picks

U.S. Companies Quicker to Give Board Seats to Activists | St. Louis Post-Dispatch | September 27, 2015

Companies are granting board seats to activists faster and with less resistance than in the past. Research from Activist Insight shows that companies are reaching agreements with activist investors within 56 days on average, down from 83 days in 2010. The authors suggest that companies are changing their reaction to activist shareholders because they can no longer rely on the support of large institutional investors in the event of an expensive proxy fight. Additionally, companies may not view giving a small number of board seats to an activist firm as dilutive to the board structure. Read more

Another Heads-Up for Companies and Committees Making (or Preparing to Make) Performance Awards | Winston & Strawn LLP | September 22, 2015

A change to Generally Accepted Accounting Principles (GAAP) by FASB could have an impact on incentive stock plans. The change would replace extraordinary items – events and transactions that are both unusual and infrequent - on the income statement with events or transactions that are either unusual or infrequent, but not necessarily both. To the extent a company's stock plan includes language referencing GAAP extraordinary items (for example, some companies exclude them from performance metrics), the stock plan may need to be amended, as this language references a standard which is being phased out in 2016. Read more

Compensation Trends + Developments

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