Our Insights

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

The Fallacy of Grant Date Fair Value

The great challenge in benchmarking a company’s executive compensation plan against the plans of peer companies arises from a simple fact: not all long-term incentive programs are created equal. Because companies use differing types and mixes of incentives, with the value of each calculated differently, comparison among programs can be a matter of some complexity. Chip Thomas and Anne McGettigan cut through compensation plan complexity with Grant Date Fair Value (GDFV) in this blog post. Read more

Advancing the Dialogue: CEO Sign-On Packages: Is There Such a Thing as Too Much?

One of the most important – and highly publicized – decisions a Board makes is identifying and hiring the company’s CEO. Given the critical nature of this decision, Boards often make major investments in signing packages for new CEO. This article analyzes CEO sign-on packages, their impacts on stock price and Say on Pay voting, and key principles for designing an optimal deal. Read the entire article (PDF) written by Greg Arnold, Ross Brondfield and Julie Archer. Read more

Board Pay Trends

Semler Brossy Consulting Group Managing Principal Blair N. Jones analyzes emerging director pay trends. Read more

CEO Sign-On Practices, Risks

One of the most important decisions a board makes is identifying and hiring the company’s CEO. Given the critical nature of this decision, boards often make major investments in signing packages for new CEOs. These signing packages serve multiple purposes: helping secure new talent to run the company, providing “staking” grants to align the new CEO with shareholders, and, in some cases, buying out existing equity packages. This article by Greg Arnold originally appeared in NACD Directorship. Read more