Insights

Executive Compensation in the Banking Industry

Emerging Trends and Best Practices 2016-2017

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Introduction Bank executive compensation practices continue to evolve, as does the regulatory influence on pay programs. Eight years after the Dodd Frank Act was signed, incentive compensation rules under Section 956 of the Act remain outstanding and seem unlikely to…

Director Pay Rises 20% in Five Years, Driven by Equity Awards

REPRINTED PRESS RELEASE FROM EQUILAR

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REDWOOD CITY, CA (October 18, 2017) — Annual compensation for boards of directors at the largest U.S. public companies has risen nearly 20% over the past five years, according to a new report from Equilar, Director Pay Trends, which features…

Six Years Running – Meridian Named a “Best Small Firm to Work For”

For the sixth consecutive year, Meridian Compensation Partners was recognized in Consulting Magazine as a "Best Small Firm to Work For."

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For the sixth consecutive year, Meridian Compensation Partners was recognized in Consulting magazine’s recently released list of the “Best Small Firms to Work For” in 2017. The rankings are based on an online survey of over 10,000 consultants working for…

ISS 2017–2018 Policy Survey Summary of Key Items

ISS’s recent Policy Survey previews potential changes in its 2018 proxy voting policies.

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Each year, Institutional Shareholder Services (ISS) surveys institutional investors, public companies (“issuers”) and the consulting and legal community on emerging corporate governance and executive compensation issues as part of its annual policy formulation process. Issuers and their advisors are collectively…

President Trump Proposal on Tax Reform

President Trump’s proposed tax plan is largely similar to the plan outlined by the White House in July – large cut in corporate tax rate, reduction in individual tax rates with consolidation of tax brackets, elimination of most deductions and increase in the standard deduction.

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The White House issued President Trump’s proposal on tax reform entitled “Unified Framework for Fixing Our Broken Tax Code.” The tax proposal provides slightly more details than the one issued in July, but remains a work in progress. The President…

SEC Issues New Guidance on CEO Pay Ratio Disclosure Rule

Last Thursday, the Securities and Exchange Commission (SEC) and the Division of Corporation Finance issued new guidance on the CEO pay ratio disclosure rule. The issuance of the new guidance lays to rest any remaining hope that the SEC will delay or significantly modify the CEO pay ratio disclosure requirement.

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Public companies and practitioners who were hoping for a comprehensive set of new guidance to address many of the vexing issues underlying the pay ratio rule generally will be disappointed by the limited nature of the guidance. However, the guidance…

Despite Strong 2016 Shareholder Returns, Certain Energy Companies Struggle with Say on Pay

In 2016, the oil and gas industry generated positive returns for shareholders, but in 2017 oil and gas companies lagged general industry in Say on Pay support.

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ISS recommended against 18% of oil and gas companies vs. 12% for the entire Russell 3000, and 3% of oil and gas companies failed Say on Pay (i.e., <50% support) compared to only 1% in the Russell 3000. ISS recommended…

NYC Pension Fund Launches Campaign for Enhanced Board Diversity Disclosure

The New York City Comptroller’s Office recently announced that it launched the next phase of the Boardroom Accountablity Project, in which the Comptroller, on behalf of New York City Pension Funds, is seeking enhanced disclosure and engagement with 151 major public companies on board composition, diversity and refreshment.

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In November 2014, the Boardroom Accountability Project initiated the first phase of its campaign, in which the New York City Pension Funds petitioned for public companies to adopt proxy access. The initial campaign successfully resulted in widespread adoption of proxy…

Lessons From Wells Fargo: Forfeiture and Clawback Policies

The Wells Fargo & Co. sales incentive fraud scandal has further increased the scrutiny on banking industry compensation practices.

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As published in BankDirector.com By: Susan O’Donnell, Daniel Rodda| SEPTEMBER 13TH, 2017 Since 2010, banks have followed the Interagency Guidance on Sound Incentive Compensation Policies and reviewed their incentive plans to ensure they do not motivate inappropriate risk taking. However,…

Bob Romanchek on Inside America’s Boardrooms

In this episode, Bob Romanchek outlines five critical steps or subject-matter issues that all committee members should know if they are joining or serving on a public company’s compensation committee.

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Serving on the compensation committee has become a formidable challenge for most directors regardless of one’s background or career. Not only do compensation committees have to navigate a host of regulations and complex terminology, but over the last several years,…

SEC Official Confirms that the SEC Will Not Delay CEO Pay Ratio Disclosure

Last Friday, an official of the Securities and Exchange Commission (SEC) confirmed that the SEC will not delay the effective date of the CEO pay ratio disclosure rule and that the SEC staff will be issuing additional guidance on the rule.

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At the American Bar Association Annual Meeting, Bill Hinman, SEC Director of the Division of Corporation Finance said that the SEC would not delay the implementation of CEO pay ratio rule. In addition, Mr. Hinman stated that SEC staff would…

Matthew Isakson on NACD’s Leading Minds of Compensation

This interactive forum was a must-attend event for proactive and inquisitive corporate directors and chief executives.

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Meridian Partner Matthew Isakson was a panelist for the NACD’s Leading Minds of Compensation – West where top compensation experts provided invaluable insight on all things executive compensation and then participated in an audience-led question and answer session. Participants had…

White House Nixes Proposal to Expand Employer Reporting to Include Pay Data

The Trump administration recently informed the Equal Employment Opportunity Commission (EEOC) that it is reviewing and immediately staying the effectiveness of employer requirements to report extensive pay data.

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Currently, private sector employers with 100 or more employees and federal contractors with 50 or more employees are required each year to submit to the EEOC on Form EEO-1 the number of individuals employed by job category and by race,…

Competing Pay Perspectives

From C-Suite Magazine, an Equilar publication: Issue 24, Summer 2017

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CEO pay can be calculated a number of ways—which one is “right?” CEO pay is on its way up. Again. Or it’s not—depending on how you want to look at it. The release of publicly reported compensation during “proxy season”…

Institutional Shareholder Services Releases its 2018 Policy Survey Questionnaire

Institutional Shareholder Services (ISS) recently issued its policy survey questionnaire, which previews potential changes in ISS’s 2018 proxy voting policies.

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Through its annual policy survey, ISS seeks feedback from institutional investors, public companies, corporate directors and the consulting and legal communities on emerging trends in corporate governance, executive compensation and other matters as part of its policy formulation process. The…

Career Congratulations to Mary Ann Polk

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Meridian Compensation Partners congratulates Mary Ann Polk on her recent retirement from the firm and partnership. Mary Ann’s contributions over nearly thirty years as an executive compensation advisor have helped build Meridian into its industry leadership position today. Many Meridian…

Compensation Advice for PE-Owned Companies

Companies that are owned either privately or by private-equity (PE) firms face unique executive compensation challenges.

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From the July/August 2017 issue of NACD Directorship Visit NACDonline.org Meridian Compensation Partners has deep experience working with companies throughout the typical PE ownership life cycle—from public to private and back into the public markets through an initial public offering…

NACD Directorship 100 Released—the Annual List of the Most Influential Leaders in Boardrooms and in Corporate Governance

Michael Powers and Jim Wolf were named to the NACD Directorship 100 list for 2017, making it the fifth consecutive year for both Partners.

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The National Association of Corporate Directors (NACD) announced the 2017 NACD Directorship 100, the annual list that recognizes leading corporate directors, governance experts, and other influencers who impact boardroom practices and performance. NACD identifies these outstanding directors and governance professionals…

CEO Pay Trends: Looking Beyond Reported Pay Figures

CEO Pay Trends: Looking Beyond Reported Pay Figures Webinar from July 13, 2017

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In case you missed this fantastic webinar on July 13, 2017… Visit http://www.equilar.com/webinar-videos.html to request a full replay or the slides from this webinar entitled CEO Pay Trends: Looking Beyond Reported Pay Figures. Equilar, Meridian Compensation Partners and the Center On Executive…