Our Insights

Advancing the Dialogue: The Benefits of Holding Requirements for Equity Incentive Plans

Ownership guidelines have become the standard approach for public companies to demonstrate a commitment to executive ownership. In this article we explore the benefits of an alternative approach – holding requirements for vested shares – which can be a more meaningful and practical approach to encourage and demonstrate ownership. Read the entire article (PDF) written by John Borneman. Read more

The Problem With Relative Total Shareholder Returns

Many companies are incorporating relative total shareholder returns into incentive plan designs. This article explores two fundamental, but little discussed, issues with all relative total shareholder return metrics that need to be taken into consideration before addressing more detailed design concerns. Read the entire article (PDF) written by Todd Sirras and Barry Sullivan as it appeared in WorkSpan. Read more

New York Stock Exchange – Commission on Corporate Governance

A special Commission on Corporate Governance convened by the New York Stock Exchange published a list of 10 Core Principles of Corporate Governance. We believe the list provides a balanced discussion, and serves as a reminder that corporate governance is a matter of protecting and promoting the corporation’s interests. Read more

Compensation Risk Disclosure – What are Companies Doing?

The topic of risk has taken center stage this year and, partly in response, new SEC regulations require companies to disclose whether their compensation programs create risks that are “reasonably likely to have a material adverse effect” on the company. As a new requirement this year, there was no precedent on which companies could rely to develop their disclosure. This article captures the risk disclosure practices from recent filings for over 200 companies in the S&P 500. Read more

Kicking Off the 2009-10 Executive Compensation Season: A Real-time Discussion of Critical Issues and Looming Legislative and Regulatory Changes

A host of critical issues and looming legislative and regulatory changes are poised to affect the landscape for the 2009-10 executive compensation season. In an October 2009 webcast, SBCG's Blair Jones and Roger Brossy partnered with Latham & Watkins to address frequently asked questions surrounding corporate governance reforms and the growing influence of proxy advisors, institutional investors and shareholder activists. Read more

What’s the Role of Equity in the New Environment?

Companies are challenged with goal setting in a volatile market, dramatically diminished value of past equity awards, and share usage issues by maintaining a strict “target value” approach to equity awards. This article, written by Seymour Burchman and Blair Jones, explores alternative approaches to equity awards given these uncertain market conditions. Read more