Pay-for-Performance and Executive Compensation

by Malak Kazan, CECP, CCP, CBP, GRP 26. November 2012 15:09

Pay-for-performance for executives is incentive compensation aligned to business objectives that are typically defined prior to the beginning of the performance period.  Most pay-for-performance plans are short-term incentive plans that qualify for IRC Section 162(m) tax deduction. The award amounts are derived based on a formula and reported in the Non-equity Incentive Plan Compensation column of the Proxy’s Summary Compensation Table. 

[More]

Equity Compensation and Long-Term Focus

by Malak Kazan, CECP, CCP, CBP, GRP 16. October 2012 09:49

With the advent of Say-On-Pay and the prolonged sluggish economy, one might think that business executives are risk averse and look to retain the stock prices for shareholders as opposed to potentially attempting to increase them. One reason for this type of business leadership approach could be attributed to shareholder activism that advocate more focus on long-term results, as well as prevent excessive risk taking and the resultant Stock Ownership Policies (SOPs). 

[More]

What Do Defined Contribution and Medical Benefits Have in Common?

by Malak Kazan, CECP, CCP, CBP, GRP 8. October 2012 11:23

Prior to 2008, when the term Defined Contribution (DC) plan was mentioned, one automatically thought of 401K-, 403b-, and 457-type plans in which both the employee AND employer contribute to a retirement benefit plan and “share” in the risk of the final benefit realized by the employee.  These plans required the employee to actively manage the risk and performance of his/her retirement account(s) and be more engaged in retirement planning.

[More]

Tags:

“Control of Pay” vs. “Say on Pay” for British Executives

by Malak Kazan, CECP, CCP, CBP, GRP 29. June 2012 11:45

Aligning executive pay to performance seems to be at the forefront for boards, shareholders, and legislators.  The UK has been ahead of the curve when it comes to regulating executive compensation practices.

[More]

SEC Investigates Executive Loans

by Malak Kazan, CECP, CCP, CBP, GRP 1. May 2012 12:04

The U.S. Securities and Exchange Commission has opened an inquiry into Chesapeake Energy Corp's program that granted Chief Executive Officer Aubrey McClendon a share in each of the natural gas producer's wells.

[More]