Executive Compensation: Pay for Performance Incentives Plans

by Malak Kazan, CECP, CCP, CBP, GRP 4. March 2011 14:44

As part of ERI's Executive Compensation Index and tracking the highest paid executives in 45 top publicly traded US firms, cash bonuses have shifted to cash incentives. From 2006 thru 2009, 71% of the companies paid no cash bonuses in at least three of the four years. While these firms did not pay cash bonuses as defined by the SEC, they did, however pay compensation as non-equity incentives. In the same 4-year period, 80% of the companies paid some amount in non-equity compensation which is the compensation component where performance based cash incentive plans are reported.

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Quiksilver Executive Compensation Disclosures in 2011 Proxy Statement Filing

by Malak Kazan, CECP, CCP, CBP, GRP 17. February 2011 09:12
Let’s take a closer look at the disclosures related to executive compensation in the Compensation Discussion & Analysis (CD&A) section of Quiksilver’s recent proxy statement, filed February 9, 2011 for its upcoming annual meeting on March 22, 2011. [More]

Executive Compensation: Which Companies Are Proactive with Say-On-Pay?

by Malak Kazan, CECP, CCP, CBP, GRP 4. February 2011 16:14
With the heightened sensitivity toward executive compensation pay levels, there have been recent announcements indicating that companies are adjusting pay decisions relative to their organization’s performance and overall economic conditions. Some announcements related to executive compensation show that companies are proactively adapting. [More]

Restricted Stock Awards: Changing Executive Compensation

by Malak Kazan, CECP, CCP, CBP, GRP 3. February 2011 15:33

Top executives often receive equity in the company as a large proportion of their total compensation. Which equity instruments corporations use to make those equity awards has changed significantly over the past decade. The use of Stock Options (SOs), where executives have the right to purchase company stock at a certain price after vesting, has dropped dramatically, being replaced with Restricted Stock Awards (RSAs), where, after vesting, ownership of the stock is automatically transferred to executives.

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Executive Compensation: Say-On-Pay

by Malak Kazan, CECP, CCP, CBP, GRP 3. February 2011 11:07

This week the SEC approved the non-binding Say-On-Pay rule. This is one component of the executive compensation provision of the Dodd Frank Act, a comprehensive financial regulatory reform enacted due to the collapse and near demise of many industry giants, like Lehman Brothers and AIG. The executive compensation provision are intended to discourage companies from awarding lucrative packages that encourage risky behavior.

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