Dialogue

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

Subscribe to Dialogue
Week of
October 13, 2014

Quick Picks

Pay Ratio Disclosure 'Explosive' Issue for Employees | Agenda (subscription required) | October 17, 2014

With the final CEO-to-median pay ratio disclosure rule due to be released by the end of October, directors are considering how to handle employee responses to discovering median pay.  Compensation consultants emphasize that companies should be prepared to explain pay structure – by training management to discuss pay and by using proxy statements to communicate pay ideology with both shareholders and company employees.  Thomas Kim of Sidley Austin recommends that companies who disagree with SEC metrics should publish their own calculation of pay ratio, in addition to the SEC mandated figure. Read more

Major Design Changes have Occurred in Executive Change-in-Control Arrangements According to a Recent Study by Meridian Compensation Partners | Reuters | October 6, 2014

According to a study of 160 large U.S. companies conducted by Meridian Compensation Partners, golden parachute practices are rapidly changing in response to concerns from shareholders and proxy advisors. Use of single trigger equity vesting declined from 50% to 33% prevalence since 2010, and excise tax gross ups for CEOs declined from 60% to 35% prevalence.  However, 75% of companies still have change-in-control protection for NEOs, with severance payouts for CEOs remaining close to 3 times salary plus bonus.   Read more

Compensation Trends + Developments

Regulation, Legislation + Governance

From Critics + Commentators