To exhort listed companies and their top executives to follow ‘good business practices’, regulator Sebi cleared new corporate governance norms that require them to justify CEO salaries, put in place whistle-blower policies and have orderly succession plans. Continue Reading →
Tag Archives | CEO pay
Last week the SEC finally proposed rules to require public companies to disclose the pay ratio between their CEO and their employees, as mandated by Dodd-Frank. Companies would have to disclose the ratio between CEO compensation and the median pay of their employees. Update: Comments due December 2nd.
As reported by the WSJ, the ratio of “average” pay jumped from 51.6 in 1981 to 319.7 in 2011, according to data compiled by Kevin Murphy of the University of Southern California. The AFL-CIO sampled S&P 500 firms and claims the ratio went from 42 in 1980 to 380.
In response to complaints from multinationals that tallying pay for workers around the globe would be prohibitively expensive, the SEC’s draft largely leaves estimating and sampling methodology up to individual companies. Continue Reading →
Time to Move Down the Food Chain With Proxy Proposals
How does director voting look so far this year? Eighty percent of directors up for election received over 90% shareholder support. And nine of ten received at least 80% support. Directors of large-cap companies had the highest rate of support, averaging 95% approval. Small cap and Micro-cap directors had the lowest affirmative rates, with 76% voting “for.” Only a very small number of individual directors (less than 2%) failed to receive majority shareholder support. (From ProxyPulse, a Broadridge PwC Initiative. Much more at the site.) Continue Reading →
Starbucks ($SBUX) is one of the stocks in my portfolio. Their annual meeting is coming up on 3/20/2013. ProxyDemocracy.org had collected the votes of six funds when I checked on 3/15/2012. I voted with management 56% of the time. View Proxy Statement. Warning: Be sure to vote each item on the proxy. Any items left blank will be voted in favor of management’s recommendations. (See Broken Windows & Proxy Vote Rigging – Both Invite More Serious Crime) Continue Reading →
The following is a guest post by Michelle de Cordova, Director, Corporate Engagement & Public Policy, NEI Investments. The article originally appeared on the NEI Investments website and is reproduced here with permission from both the author and the firm. NEI Investments (NEI) is a mutual fund company that “makes excellent, independent portfolio managers accessible to Canadian retail investors through two award-winning fund families: Northwest Funds and Ethical Funds.” It also has Canada’s largest team of in-house socially responsible investing specialists. Continue Reading →
Broadridge Financial Solutions, Inc. ($BR) is one of the stocks in my portfolio. Their annual meeting is coming up on 11/15/2012. ProxyDemocracy.org had collected the votes of two funds when I voted on 11/8/2012. I voted with management 50% of the time. View Proxy Statement. Warning: Be sure to vote each item on the proxy. Any items left blank will be voted in favor of management’s recommendations. (See Don’t Let Companies Change Shareholders’ Blank Votes) Continue Reading →
Hain Celestial Group ($HAIN) is one of the stocks in my portfolio. Their annual meeting is coming up on 11/15/2012. ProxyDemocracy.org had collected the votes of two funds when I voted on 11/8/2012. I voted with management 8% of the time. View Proxy Statement. Warning: Be sure to vote each item on the proxy. Any items left blank will be voted in favor of management’s recommendations. (See Don’t Let Companies Change Shareholders’ Blank Votes) Continue Reading →
A complimentary 90-minute webinar co-sponsored by Eagle Rock Proxy Advisors and Waller Lansden Dortch & Davis, LLP will be held at 2:00 p.m., EDT, on Thursday, November 1, 2012. Register now. Continue Reading →
Time to step into the way back machine to see what we were writing about 5, 10 and 15 years ago. Five years ago @ Corporate Governance, I was pleading for readers to send comments to the SEC on their proxy access proposals. 30,000 letters wasn’t enough, in my opinion.
A shareholder proposal calling for a “say-on-pay” vote by shareowners on executive compensation at Activision Inc. (ATVI) filed by As You Sow received 69% of the vote at the company’s annual meeting held in Beverly Hills, California. This may be the highest vote result so far of about 50 say-on-pay proposals voted on by shareowners this year. Activision is a publisher of video games including Quake, Doom and Guitar Hero, and is currently all the news for its purchase of Bizarre Creations Ltd., the UK studio behind the popular Project Gotham Racing title. (Activision to Purchase U.K.’s Bizarre Creations, WSJ, 9/27/07) Conrad MacKerron, Director, Corporate Social Responsibility Program at the As You Sow Foundation, criticized the company for providing outrageous perks like paying the mortgages, Medicare taxes, and even pet-sitting for executives. Continue Reading →
Guest post from Kent Greenfield. Author, ‘The Myth of Choice’; law professor at Boston College. This article is adapted from a more substantial essay in the Fall 2012 issue of Democracy: A Journal of Ideas and appeared previously on Huffington Post, 9/15/2012.
FedEx ($FDX) is one of the stocks in my portfolio. Their annual meeting is coming up on 9/24/2012. ProxyDemocracy.org had collected the votes of four funds when I voted on 9/18/2012. (A fifth fund is now reporting.) I voted with management 69% of the time. Continue Reading →
Fall is filing time for Responsible Wealth’s annual shareholder resolutions. Currently, Mike Lapham is working with the Center for Political Accountability to identify which corporations Responsible Wealth will file resolutions with. Continue Reading →
With the passage of the Dodd-Frank and the Sarbanes Oxley Acts, clawback policies have become increasingly prevalent among public companies. However, it is rare to find a company actually put a clawback policy into effect. Citing Equilar’s findings from the 2012 Clawback Policies Report, we review what a clawback policy is and we examine what triggered one major U.S. bank to put their clawback policy into action. Continue Reading →
Time to step into the way back machine to see what we were reporting on 5, 10 and 15 years ago.
Five Years Ago @ CorpGov.net: The Main Topic was Proxy Access
The common belief that firms exists to maximize shareholder value has led to massive growth in stock-based compensation for executives and a naive and wrongheaded coupling of the “real” market (the business of designing, making and selling products and services) with the “expectations” market (the business of trading stocks, options and complex derivatives). It’s a bit like confusing winning the Super Bowl with winning a bet on the Super Bowl. Continue Reading →
How Not to Argue for Bonuses. Reprinted with permission from PIRC Alerts, 17 July 2012. PIRC is the UK’s leading independent research and advisory consultancy providing services to institutional investors on corporate governance and corporate social responsibility. Continue Reading →
The co-operative sector in the UK, which reached £35.6 billion, outperformed the mainstream economy from 2008 to 2011 by over 20 per cent, growing 19.6% while Continue Reading →
For future reference, I’m bookmarking 2012 Say-on-Pay Votes: Fulfilled Expectations, Though Not Without Surprises by Shirley Westcott of Alliance Advisors, LLC, originally published in the corporate governance newsletter VIPsight.
Google ($GOOG) is one of the stocks in my portfolio. Their annual meeting is coming up on 6/21/2012. Voting ends 6/20 on Moxy Vote’s proxy voting platform, which had 9 recommendations “from good causes,” including 3 consolidations, when I checked and voted on 6/17/2012. ProxyDemocracy.org had information on 5 funds voting. I voted with management 42% of the time. Continue Reading →
Equilar anchor Bonnie Day compares male and female compensation at the top, with key findings from the 2012 S&P 500 CEO Continue Reading →
Biogen Idec (BIIB)($BIIB) is one of the stocks in my portfolio. Their annual meeting is coming up on 6/8/2012. Voting ends on 6/7 at Moxy Vote’s proxy voting platform, which had 6 recommendations “from good causes,” including 2 consolidations, when I checked and voted on 6/5. ProxyDemocracy.org had 6 funds voting. I voted Continue Reading →
It is common knowledge that people are not driven solely by the prospect of financial rewards. Yet, in business, motivational tools for top executives—particularly the CEO—almost singularly comprise financial incentives. In 1980, only 10 percent of the UK’s largest FTSE100 companies utilized incentive arrangements (in the form of cash and stock-based variable pay). Today, they are universally employed as a matter of best practice and variable Continue Reading →
Click here now to tell the SEC to require companies to disclose CEO-to-worker pay ratios. If you own stock, click here to get information on how to vote your shares on “say-on-pay” proxy proposals. Continue Reading →
Ferro (FOE) is not one of the stocks in my portfolio but I did help in reviewing companies I thought were good candidates for a proxy access proposal and I did help design the proposal submitted to FOE, so I’m offering my voting advice. Continue Reading →
Richard L. Trumka, President, AFL-CIO announced an update to their PayWatch website—this year’s version is called CEO Pay and the 99%. Trumka says it’s your one-stop shop for the most recent information on out-of-control CEO pay and what you can do to stop it. Continue Reading →
British Petroleum (BP) is one of the stocks in my portfolio. Their annual meeting is coming up on 4/12/2012. Voting ends 4/11 on Moxy Vote’s proxy voting platform, which had no voting Continue Reading →
Schlumberger (SLB) is one of the stocks in my portfolio. Their annual meeting is coming up on 4/11/2012 in Curacao, frequently referred to as “one of the Caribbean’s best-kept secrets,” and not easy to get to from Continue Reading →
Last week the Wall Street Journal printed an article describing how CEOs around the world spend their time. The article drew on data from a larger study, the Executive Time Use Project, and relied on reports of time use by CEO’s personal assistants. The article indicates that assistants only tracked activities that lasted Continue Reading →
That’s the title of a new report from ISS on the factors that contributed to significant investor opposition during last year’s say-on-pay votes at U.S. companies. From the summary: Continue Reading →
The stock market still has not recovered from the meltdown of 2008, and many companies have had severe reductions in their workforces, but CEO compensation of major U.S. companies rose 36.5% last year. Why is there this disconnect between stock market performance, mass layoffs and CEO compensation? What should boards of directors be doing to better align CEO Continue Reading →
Equilar, the leading provider of executive compensation benchmarking and research solutions, announced the release of its Pay-For-Performance Analytics suite yesterday, along with the fact that the Council of Institutional Investors (CII), whose members hold $3 trillion in assets, has signed on as the first client. According to the press release:
By combining an innovative market-based algorithm to identify peer companies with a realizable pay methodology using long Continue Reading →
Walgreen Co. (WAG) is one of the stocks in my portfolio. Their annual meeting is coming up on January 11. Voting on MoxyVote.com‘s platform ends January 10. When I last looked, MoxyVote.com had recommendations from seven “good causes,” which included three consolidations. ProxyDemocracy.org had five Continue Reading →
SVNACD Program 1/19/2012; 7:30-8:00 a.m. Continental Breakfast; 8:00-9:30 a.m. Palo Alto, CA
The stock market still has not recovered from the meltdown of 2008, and many companies have had severe reductions in their workforces, but CEO Continue Reading →
- Total Realized Compensation in the S&P 500 rose by about 36 percent.
- Total Realized Compensation in the Russell 1000 rose by more Continue Reading →
The Media is No Friend of Corporate Directors, writes T.K. Kerstetter. That’s right, and it is time boards took action to avoid giving shareowners good reason to vote against directors or the pay packages they authorize. Kerstetter is upset because after talking to the press about the appointment of former Governor and one-time Nashville mayor Phil Continue Reading →