Our Insights

Adjusting Comp Goals “After the Fact”

Goal setting for executive incentive plans is generally a difficult proposition. In many situations, it would be desirable to have the flexibility to adjust plan targets automatically on an “after-the-fact” basis if the actual operating environment deviated significantly from the company’s original budgeting and planning assumptions. This article lays out an approach for automatically adjusting plan targets in a prescribed manner and illustrates the approach with a case study based on one of our clients. Read more

Righting the Say On Pay Ship

One of the positive outcomes of the Say on Pay provision in the Dodd-Frank legislation has been more regular dialogue between companies and shareholders. But to date, many companies have engaged with shareholders only after shockingly low votes. This article by Seymour Burchman and Blair Jones explores our recommendation - that companies should begin a dialogue with investors and proxy advisors well before pay concerns arise. This engagement can help avoid the distraction and other consequences of low Say on Pay vote results. Read more

Say on Pay Compensation Changes Working

Todd Sirras, Managing Principal at Semler Brossy, discusses compensation changes due to say on pay measures at corporations and the evolution of performance-based pay. He speaks on Bloomberg Television's "Bloomberg Surveillance." Read more

Advancing the Dialogue: Want to align pay and performance? Grant fixed shares

SBCG’s analysis of pay for performance relationships indicates that simply granting the same number of shares each year to individual executives—rather than using a grant date target value—might result not only in more perceived alignment between pay and performance as measured on the grant date, but also in more actual alignment. Read the entire article (PDF) written by John Borneman and Dan Marcus. Read more

Shareholders Give Banks a Thumbs-Up on Pay

Bank directors can take heart from the results of say-on-pay votes during the past three years. Since the 2010 Dodd Frank Act gave shareholders of public companies the right to an advisory vote on executive compensation practices, banks have, on average, slightly outperformed all other companies in affirmative votes. Read more

Optimizing Pay Prominence

Pay prominence – the degree to which compensation is used as a front end driver of behavior – is a more pivotal dimension of compensation strategy than most companies realize. Semler Brossy's Barry Sullivan and Greg Arnold highlight the topic in advance of their upcoming session at the California HR Conference, being held August 26-28, 2013 at the Anaheim Convention Center. Read more