Heads Up: Does performance (TSR) measured on another day smell as sweet?
RiskMetrics uses the median 1- and 3-year Total Shareholder Returns (TSRs) for a company’s 4-digit GICS industry group in applying the first screen of its pay for performance test. Only if a company’s own 1- and 3-year TSR are both below the company’s GICS industry group 1- and 3-year medians, will RiskMetrics continue on with [...]
RMG Issues FAQs on New SEC Proxy Disclosure Rules
RiskMetrics Group (RMG) recently issued several FAQs related to the new SEC proxy disclosure rules. Previously, I blogged about the RMG FAQ regarding Compensation Risk Disclosures, and today I will address the two other FAQs, one on compensation consultant conflicts and the other on the enhanced disclosure about directors – qualifications, diversity policies, and board [...]
RiskMetrics Weighs In on Compensation Risk Disclosures
The new proxy disclosure rules (Item 402(s) to be precise) require public companies to include a narrative disclosure discussing the company’s compensation policies and practices as they relate to the company’s risk management if risks arising from the company’s compensation policies and practices for its employees are “reasonably likely to have a material adverse effect [...]
Sample RMG Burn Rate Commitment Language
Last week I blogged about the new burn rate commitments that RiskMetrics Group’s (RMG’s) Research Group was accepting. Thanks to a reader, I’m now able to share sample burn rate commitment language that was supported by RMG: The Company commits to a three-year average burn rate for the years 2010, 2011 and 2012 not to [...]
Another Burn Rate Commitment RiskMetrics Should Consider
Well, as expected, RiskMetrics Research Group is being a little flexible when it comes to companies’ burn rate commitments for 2010 (for the full details, read this blog entry). But, as I indicated, given the speculative nature of two of the new allowable options, I don’t think many companies will easily undertake such commitments. After [...]
Latest Tweets
Cisco Board Announces Advisory Vote on Executive Compensation - MarketWatch http://goo.gl/Fc99 - posted on 29/07/2010 09:21:11
SEC Reviewing Proxy Process - - CFO.com http://goo.gl/nxgQ - posted on 28/07/2010 07:01:50
Law Sharpens 'Clawback' Rules for Improper Pay - WSJ.com http://goo.gl/rItz [looks at new clawback provision of Dodd-Frank Act] - posted on 26/07/2010 09:31:54
Feinberg Says Bonuses Paid by Troubled Banks Were Unmerited - NYTimes.com http://goo.gl/1eXc - posted on 23/07/2010 08:09:40
The Obama financial reform bill won't prevent another crisis - Jul. 19, 2010 http://goo.gl/JumH - posted on 20/07/2010 07:16:55
Treasury Works on Plan for Boards of Weak Banks - WSJ.com http://goo.gl/gB3X - posted on 17/07/2010 08:10:52
Finding a Good Financial Bill in 2,300 Pages - DealBook Blog - NYTimes.com http://goo.gl/4IfQ - posted on 16/07/2010 07:47:14
Do High Incomes Make CEO’s Mean? - The Wealth Report - WSJ http://goo.gl/57ru - posted on 16/07/2010 07:45:26
Are compensation committees a cover for high CEO pay? - Jul. 15, 2010 http://goo.gl/6wjm - posted on 16/07/2010 07:44:39
SEC Delves Into 'Proxy Plumbing' - WSJ.com http://goo.gl/i1rv - posted on 15/07/2010 08:45:47
Financial Reform Bill Limps Toward Passage - NYTimes.com http://goo.gl/RYlk - posted on 14/07/2010 09:39:41
Former CEOs Join Ranks of Unemployed - WSJ.com http://goo.gl/5e0E - posted on 14/07/2010 08:55:11
Finance Bill Close to Passage in Senate - WSJ.com http://goo.gl/wuBq - posted on 13/07/2010 10:14:18
'Phantom stock' may be next big thing in employee pay - Jul. 12, 2010 http://goo.gl/n2lE [New? No. Seeing more of this? Yes, 4 many reasons] - posted on 13/07/2010 08:12:51
Human Resource Executive Online - Companies Gear Up for Say-on-Pay Rule http://goo.gl/AJZc [see Ed's SOP presentation on blog for more info] - posted on 13/07/2010 08:09:18
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