Seamus O’Toole featured in Bloomberg: “Pressed by Activists, Companies Tying Pay to Performance”
From the March 24 article in Bloomberg BNA’s Corporate Law & Accountability Report: “Shareholder pressure on companies over director and officer compensation is spurring change in holding policies and stock ownership thresholds for board members and management, a compensation consultant said March 24.
The increase in shareholder activism has actually started to influence the way in which companies think about ownership policies, Seamus O’Toole, a managing director of Semler Brossy Consulting Group, said at a webinar sponsored by compensation consultant Equilar Inc.
Ownership guidelines and holding policies are the two main methods companies use to ensure that compensation for directors and officers corollate to long-term performance.
O’Toole observed that activists generally are more focused on absolute levels of ownership, as opposed to the particular policy or the guideline. But the policy or the guideline is a way to ensure that your executive team does have adequate ownerships and at the same time signal to shareholders that the company is heeding their concerns, he said.”
Read the full article, “Pressed by Activists, Companies Tying Pay to Performance.”