Energy Insights

2019 Say on Pay Outcomes in Oil & Gas Continue to Trail General Industry

Several oil & gas companies had a rough proxy season in 2019, with overall lukewarm shareholder support for executive pay programs in the industry.

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While many companies received kudos from investors for the addition of returns-oriented incentive metrics, others struggled to demonstrate pay-for-performance alignment or continued to make aggressive pay actions despite lackluster shareholder returns in 2018. In this posting, we take a look…

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…

Controlling Activist Investors

Potential Texas legislation would curtail activist investors and proxy advisors.

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While we wait to see what deregulation might come out of the new administration regarding Dodd-Frank or other executive compensation regulations, the Texas legislature might take a huge step in favor of corporate boards and management. A bill currently pending…

The Impact of Lower Stock Prices on 2016 Say on Pay

Many energy companies should anticipate tripping ISS's absolute stock price test.

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The current industry downturn is already impacting compensation programs and will likely also impact the upcoming Say on Pay season. Based on our research, the market decline will cause an increased number of energy companies to trip a key ISS…

Energy Industry Influences ISS Peer Approach

ISS recently released its policy updates for the 2015 proxy season, with one notable change.

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ISS recently released its policy updates for the 2015 proxy season (Meridian summaries here and here). One notable change is ISS’s methodology for selecting peers for energy companies for use in its pay for performance analysis. This change was likely…

ISS Continues its Unpredictability

While ISS Remains Influential, Some of its Decisions are Inconsistent From Company to Company

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The 2014 proxy season is almost over for calendar year companies. Based on our analysis, ISS continues to play an influential role and the energy industry continues to be one of their favorite targets, but it’s getting more difficult to…

Using Realizable Pay to Test Pay and Performance Alignment

Testing the Link Between Pay and Performance Can Help Firms in Many Ways

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With the calendar year completed, many of our energy clients are taking this opportunity to test the long-term historical link of pay and performance. This historical analysis serves a few purposes: Helping the compensation committee understand whether they have an…

Changing the Role of Proxy Disclosures

With Rules Changing Companies Have an Opportunity to Focus on Disclosure Improvements

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The recent release of the SEC’s proposed rules on CEO Pay Ratio disclosure has everybody thinking about preparation of their proxy disclosures. While changes required under these proposed rules likely won’t be in effect until the 2016 proxy season, there…

What Do This Year’s Bonus Payouts Look Like?

CEO Payouts for Energy Companies in the S&P 500 Varied Considerably

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This is a question we hear frequently this time of year — and now that many of the 2013 proxy statements have been filed, we thought we’d share our insights on CEO bonus payouts. We focused on S&P 500 CEOs…

2013 Proxy Disclosure Trends: Pay-for-Performance

Notable Pay-for-Performance Disclosures Made By Energy Companies This Year

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The 2013 proxy season is now in full swing, with dozens of energy industry companies having filed their latest proxy. One of the areas of significant attention this year is pay-for-performance disclosure. So far in 2013, we’ve already seen some…

Telling Your Story

How to Prepare an Effective and Compelling Proxy

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Most companies are getting ready to file their 2013 proxy statements and telling the story of their 2012 compensation. Effective proxies share a clear and compelling alignment between performance and pay. For most energy companies, however, compensation does not boil…