Archive October 2012

New Article: Failed Say-on-Pay Votes: A Road Map to Recovery

On October 9, 2012, Bloomberg BNA’s Pension & Benefits Daily published this article by Exequity’s Ed Hauder. The article looks at companies whose say-on-pay (SOP) votes failed in 2011 and have reported their SOP votes for 2012, some of the actions these and other companies with failed SOP votes can take to turn things around, as well as the success this group of companies had with their 2012 SOP votes, and includes charts looking at 2011 and 2012 SOP votes, change in CEO total compensation, and TSR and percentile rank against companies’ GICS groups.

http://www.exqty.com/Media/Publications/Exequity%20Hauder%20Article%20PBD%20Oct.%209%202012.pdf

Speaking at NY Compensation Association on 10/19

On October 19, 2012, I will speak at the New York Compensation Association’s meeting in New York City on The Impact of Proxy Advisory Firms on Executive Compensation: How Have Companies Responded, What Might They Do, and What Does It Mean for Executive Compensation?

For more information, please see the New York Compensation Association’s website: http://www.nycomp.org/meeting.asp

Council of Institutional Investors Updates Policies

On October 5, 2012, the Council of Institutional Investors (CII) released updated corporate governance policies. The primary change in regards to executive compensation involved a tightening of the CII’s policies with respect to clawbacks. CII now calls for companies to:

  • Ensure that sufficient and appropriate mechanisms and policies are in place to recover erroneous bonus and incentive awards paid in cash, stock or any other form to current or former executive officers and to prevent the payout of such awards in the first place.
  • Establish a minimum recovery period of at least 3 years following discovery of the fraud or cause forming the basis for the recovery.

The CII’s revised Corporate Governance Policies can be found at:

http://www.cii.org/UserFiles/CII%20Corp%20Gov%20Policies%20Full%20and%20Current%2010-5-12%20FINAL.pdf

Say-on-Pay Workshop: 9th Annual Executive Compensation Conference

On Tuesday, October 9, 2012, Ed Hauder, Senior Advisor at Exequity LLP, will be participate in two panels during the Say-on-Pay Workshop: 9th Annual Executive Compensation Conference in New Orleans . Ed will participate in these panels:

  • How to Work with the Proxy Advisors: Navigating the Say-on-Pay Minefield
  • Say-on-Pay: How to Tackle All the Hot Button Issues

For more information, please see the conference website which includes sign-up links and the agenda and gives details about the host hotel for the conference in New Orleans. The conference website is:

http://www.thecorporatecounsel.net/conference2012/