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Tag >> executive compensation
Apr 06
2011

IRS audits of executive compensation: Infractions to avoid

Posted by annearf in TaxIRSexecutive compensationcompliance

annearf

With April 15 rearing its ugly head, it seems a good time to consider the Internal Revenue Service's moves to target executive compensation.

Last year, the IRS revealed it was launching a stepped-up effort to investigate executive comp practices.  With that in mind, it looks like there are a number of areas attracting or that are likely to attract IRS attention, according to John Lowell, a compensation expert in Woodstock, Ga.,  and Stephen Saxon, an employee benefits expert with Groom Law Group.

Nov 08
2010

Geithner against government involvement in executive pay decisions

Posted by dbedell in Timothy GeithnerObama AdministrationMorgan Stanleyexecutive payexecutive compensationCredit suisseCareers/Management

dbedell

According to a report on Reuters, on Monday Treasury Secretary Timothy Geithner said that the government should not be involved in setting corporate executive pay levels. 

What impact, if any, this will have on how regulation of compensation plays out is unclear, but it does once again bring to the fore the arguments on both sides of the executive pay discussion.

Jul 15
2010

The value of tying exec comp to debt

Posted by Karen1 in pensionsexecutive compensationcompensationAIG

Karen1

For years, the prevailing wisdom has held that executive compensation should be tied to a firm's equity. That way, the theory goes, management's goals are aligned with shareholders' interests.  

This thinking is fine if you're a shareholder. However, what about bondholders? "If you're compensated only with equity, you're not worried about creditors losing money," points out Alex Edmans, a professor of finance at Wharton who has researched executive compensation. He also is the author of a recent study, "Inside Debt." 

Jul 01
2010

Companies unprepared for "say-on-pay" provision

Posted by SherylNash01 in say-on-payfinancial reform billexecutive compensationcareer/management

SherylNash01

Companies are either surprised by the say-on-pay provision in the financial reform bill or dismissing its importance, judging from a new Towers Watson survey.

It found that only 12 percent of respondents said they are very well prepared for the say-on-pay legislation, while 46 percent said they were somewhat prepared. Some 22 percent said they didn't know if their companies were ready.

Jun 30
2010

Bad governance at root of crisis

Posted by Ron F in RiskRegulationfinancial reformfinancial market reformfinancial crisisexecutive compensationderivativescorporate culturecompliancecompensationBanksbanking industryBankingbank failuresauditorsAccounting

Ron F

Anyone counting on regulation alone to prevent the world from falling into another financial black hole will be sorely disappointed, a group of experts warned in an article published yesterday by the International Federation of Accountants.

The experts say that all key parties to the financial disaster--from regulators to managers and investors--share the blame and that tighter regulation alone can therefore go only so far to prevent another crisis from materializing. 

Jun 30
2010

Bad governance at root of crisis

Posted by Ron F in RiskRegulationfinancial reformfinancial market reformfinancial crisisexecutive compensationderivativescorporate culturecompliancecompensationBanksbanking industryBankingbank failuresauditorsAccounting

Ron F

Anyone counting on regulation alone to prevent the world from falling into another financial black hole will be sorely disappointed, a group of experts warned in an article published yesterday by the International Federation of Accountants.

The experts say that all key parties to the financial disaster--from regulators to managers and investors--share the blame and that tighter regulation alone can therefore go only so far to prevent another crisis from materializing. 

Jun 08
2010

Financial reform would do more than expected to limit executive pay

Posted by SherylNash01 in financial reformexecutive compensationcompensation commiteeclawback provisioncareer/management

SherylNash01

The financial reform bill passed by the Senate would do a lot more than require a say on pay from shareholders. And its other provisions could do much more to limit excessive compensation for top management, experts say.

The Restoring American Financial Stability Act of 2010, recently approved by the Senate and now part of conference committee discussions with the House, would not only provide for a shareholder vote on executive compensation disclosures, which is non-binding in any case. The bill would also require that each member of the company's compensation committee be an independent member of the board.

May 26
2010

KeyCorp shareholders say no on pay

Posted by Stephen Taub in stock optionsSay on PayriskMetricsexecutive compensationCareers/Managementbonuses

Stephen Taub

 The anti-executive pay movement is building momentum.

About 55 percent of shareholders of KeyCorp last week gave the thumbs down on the bank's pay package contained in its proxy during an advisory vote.

May 21
2010

Shareholder, public pressure tamping down executive pay

Posted by annearf in Say on PayIn complianceexecutive compensationdefined benefit planscareer

annearf

 If the recent "no" Say- on- Pay votes at Motorola and Occidental Petroleum   indicate anything, it's that shareholder activism and populist ire regarding executive compensation have real legs. The majority of shareholders at those companies rejected proposed pay packages in a non-binding vote. But those decisions are only the tip of the iceberg, at least as far as changes to executive comp go.

In fact, over the last 24 months, public and shareholder pressure has led one in three Fortune 500 companies to change their executive pay plans, according to Doug Frederick, head of Mercer's Executive Benefits Group, who was quoted recently in  Plansponsor.com. And,  in case you were wondering, those changes generally haven't involved increases.

May 08
2010

Think US populism is a bit much?

Posted by Ron F in JP Morgan ChaseGoldman Sachsexecutive payexecutive compensationcomplianceCitigroupCareers/ManagementBanksbanking reformBank of America

Ron F

To follow up on Steve Taub's blog from the other day, more companies are running into resistance from shareholders to what they see as excessive executive compensation.

True, the latest rebellions are occurring in the UK, but governance practices increasingly know few boundaries, or at least find the pond not much of one.

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