Executive Compensation: Performance Relative to Peer Companies

by Malak Kazan, CECP, CCP, CBP, GRP 16. October 2013 15:04
From a business leadership perspective, evaluating performance at an individual or organization level can usually be expressed as exceeds expectation, meets expectations and not meet expectations. These performance standards become more meaningful when they are evaluated relative to a peer group potentially eliminated “rater bias” and optimize the human capital investment in terms of compensation dollars as well as other organization development resources. [More]

Executive Compensation: Cross Border Say On Pay

by Malak Kazan, CECP, CCP, CBP, GRP 25. March 2013 12:45
On March 3, the referendum for say-on-pay votes in Switzerland passed. Unlike the US non-binding, say-on-pay vote enacted in 2011, the shareholders in Switzerland will now have a binding vote, which essentially allows them to accept or reject the compensation recommendation of its current executive management team as well as prohibit sign-on bonuses and non-statutory severance for new hires and exiting executives respectively. [More]

Stock Ownership Guideline for Apple CEO

by Malak Kazan, CECP, CCP, CBP, GRP 5. March 2013 11:23

According to the recent drop in stock price and slowed growth, Apple stakeholders looked to improve pay-for-performance alignment by establishing stock ownership guidelines for the CEO and non-employee directors.

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Are Boards Required to Maximize Tax Deduction When Deciding a CEO’s Compensation?

by Malak Kazan, CECP, CCP, CBP, GRP 18. January 2013 14:06

In a recent case, Freedman vs. Adams, a shareholder filed a claim alleging the Board paid out $130M in discretionary bonuses without consideration to maximizing tax deduction, according to IRC 162(m), specifically referring to a provision that deems performance-based compensation qualifies for a full deduction in the compensation expense.

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JP Morgan Board Adhering to Pay-For-Performance Principles

by Malak Kazan, CECP, CCP, CBP, GRP 17. January 2013 14:34

One of the key principles substantiating pay-for-performance is that the executive needs to be able to impact or influence an outcome, or have some “measure of control” over the results. The Board of JP Morgan held CEO Jaime Dimon accountable for the unconventional investment approach that was not approved and, subsequently, resulted in $6B in losses, as explained in a report issued by a JPMorgan Task Force.

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