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 [...]
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 exceed [...]
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 giving [...]
Changes to RiskMetrics Group’s Burn Rate Commitment Policy
RiskMetrics Group just announced that its Research Group is allowing companies some flexibility in their burn rate commitments for 2010. Companies that have a 3-year average burn rate that exceeds their GICS industry group cap must either publicly commit to maintaining their burn rate for the next three years at the burn rate cap for [...]
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Polls
Do you think companies will include negative disclosure about Compensation Risk Disclosure in their 2010 proxies?
- No (57%, 4 Votes)
- Yes (43%, 3 Votes)
- Uncertain (0%, 0 Votes)
Total Voters: 7
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