Insights

Choosing the Right Performance Peer Group

Why companies are using PSU plans, and how to use them effectively.

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More and more public companies are adopting performance share unit (PSU) plans as a significant component of long-term (equity) compensation for executives.[1] The most common PSU performance metric is total shareholder return (TSR – i.e., stock price growth plus dividends)…

Compensation Challenges of a Falling Canadian Dollar

With uncertainty in the worldwide economy and commodity prices, the Canadian dollar has fallen to a six-year low versus the U.S. dollar, affecting compensation programs for a large number of Canadian companies.

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After a long period of relative stability and near parity, the Canadian dollar has fallen to about 80 cents U.S. – a six-year low. The outlook for further movement up or down, is unclear and is tied both to the…

Compensation When Oil is in the $40’s

With oil prices in the $40 per-barrel range, this creates an entirely new environment for oil and gas compensation decisions. Meridian analyzes the themes and realities for 2015.

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Oil prices in the $40s create an entirely new environment for oil and gas compensation decisions this year. From our vantage point across the industry we’ve noted several important themes and realities: Situations differ. Low prices impact everyone, but some…

ISS Modifies Elements of its CEO Pay-for-Performance Test

Institutional Shareholder Services (ISS) recently announced two important modifications to its CEO pay-for-performance test.

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Institutional Shareholder Services (ISS) recently announced two important modifications to its CEO pay-for-performance test. The first modification alters ISS scoring methodology under its quantitative pay-for-performance tests that may result in slightly fewer U.S. companies showing a pay misalignment. The second…

ISS and Glass Lewis Provide Issuers the Opportunity to Update Self-Selected Peer Groups

Both ISS and Glass Lewis (through its partnership with Equilar) permit, but do not require, companies to submit updated self-selected peer groups in advance of the 2015 proxy season.

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Both Institutional Shareholder Services (ISS) and Glass Lewis (through its partnership with Equilar) permit (but do not require) companies to submit updated self-selected peer groups in advance of the 2015 proxy season. ISS and Glass Lewis develop their own peer…

Measurement Challenges for Pay and Performance

As they prepare for the 2015 incentive plan cycle, committees are grappling with the challenge of choosing the right performance measures and goals for annual and long-term incentive plans.

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In this update, we discuss five pitfalls for selecting performance measures and setting goals: Basing plan design purely on prevalent market practice Ignoring business imperatives and the cost of capital Relying solely on company history to set performance targets and…