Our Insights

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

Setting 2009 Executive Compensation: A Real-Time Discussion About Annual Bonuses

This issue of “Advancing the Dialogue” considers the challenges surrounding annual bonuses. It suggests ways to tackle goal setting and employ discretion to ensure annual plans reflect today’s realities and also consider the interests of all stakeholders. Read the entire article (PDF) written by Roger Brossy and Blair Jones. Read more

Setting 2009 Executive Compensation: A Real-Time Discussion About Long-Term Incentive Plans

This issue of “Advancing the Dialogue” explores the thorny issues surrounding long-term incentives, including: How can companies structure long-term awards in the current environment? Does long-term goal setting make sense given the turbulence and low visibility in today’s economy? What reasonable approaches exist to address the challenge of underwater options? Read the entire article (PDF) written by Roger Brossy and Blair Jones. Read more

Finalizing 2008 and Setting 2009 Executive Compensation: A Real-time Discussion of Critical Issues

Many companies, Boards and Compensation Committees are faced with important decisions in determining annual bonus and long term incentive compensation for performance periods ended in 2008 and setting performance periods and goals for periods beginning in 2009. The 2008 recession, current volatile and highly-charged economic and political environment, and poor visibility into whatever else 2009 might bring make this year's compensation setting season more challenging than ever. Register to View Archived Webcast >> Download Webcast Slides >> Read more

Long-Term Performance Plans: Overcoming Design Challenges

Companies are facing increasing pressure from shareholders and regulatory mandates to consider compensation vehicles that reward long-term performance. The success of these programs requires identifying the right metrics and establishing suitable goals. This article, written by Seymour Burchman and Blair Jones, provides four approaches to goal setting for performance-based pay programs. Read more