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Managing Compensation Complexity

Compensation committees must strike a balance between complexity and opportunity.

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Introduction Designing and administering an effective executive compensation program can be a delicate balancing act for a public company compensation committee. Balancing attraction, retention, and motivation with fairness to shareholders, or balancing internal strategic alignment with external “best practices” are…

The Impact of COVID-19 on Executive Compensation Programs

From Bank Director's BankBEYOND 2020 Online Event - November 9-11, 2020

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Given our environment, Bank Director is combining our board member and executive events into an online experience during BankBEYOND 2020! Focusing on all of the issues directors and leaders of financial institutions must know – we dive into audit and…

Weighing ESG Metrics for Pay Plans

Reprinted Director Advisory feature from NACD Directorship November/December 2020 issue

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If your conscience is bothering you because your board hasn’t added environmental, social, and governance (ESG) metrics to executive incentives, that’s a good thing. It means you care about the culture and governance aspects of your company and the future…

Lessons Learned: What will be the most critical governance issues companies must address post-pandemic?

An excerpt from "Ask the Experts" as seen in C-Suite, an Equilar publication - Issue 34, Fall 2020

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As the COVID-19 pandemic continues to cause business and economic uncertainty into the foreseeable future, corporate boards and senior management teams face unprecedented challenges. Through that lens, board compensation committees need to make prudent executive pay decisions regarding annual and…

Determining Annual Incentive Pay in a Pandemic

As seen in the 4th Quarter 2020 issue of Bank Director

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While banks with incentive plans based on formulaic financial goals are particularly challenged, even those with more discretionary plans are asking how to evaluate and reward performance in light of the pandemic. Many compensation committees will need to assess how…

How and Why Pre-Commercial Biotech CEO Pay is Different

Part Three: East Coast vs. West Coast

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In this four-part series, we examine the current state of pre-commercial biotech CEO pay, how it is tailored to the sector, and what drives differences between companies. We will explore: Part One: Tailoring Pay to the BusinessPart Two: Founders vs.…

LTI MIX—DOES ‘PERFORMANCE’ MATTER?

Reprinted from Corporate Board Member Magazine Q4

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PERFORMANCE does matter; but it is unclear whether performance plans work. Seventy-five percent of the S&P 500 deliver 50 percent or more of LTI (to senior executives) as “performance awards.” Considerable time, effort, and governance is dedicated to implementing these…

Should ESG Metrics Be Included in Executive Incentive Plans?

The key to approaching ESG is to help investors understand what is already being done within your organization and how it impacts shareholder value.

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Environmental, social, and governance (otherwise known as ESG) topics are of critical focus among the investment community, including targeted funds, and for good reason. As investors become more socially responsible and environmentally aware, they are increasingly looking to invest in…

Banking Industry Incentive Practices

Our database provides insight on trends and emerging practices, including annual and long-term incentive plan practices.

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For the last seven years, Meridian has compiled a database on banking industry compensation practices for all public banks with assets greater than $10 billion. Our database provides insight on trends and emerging practices, including annual and long-term incentive plan…

How and Why Pre-Commercial Biotech CEO Pay is Different

Part Two: Founders vs. Non-Founders

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In this four-part series, we examine the current state of pre-commercial biotech CEO pay, how it is tailored to the sector, and what drives differences between companies. We will explore: Part One: Tailoring Pay to the Business Part Two: Founders…

Benchmarking in an Unusual Cycle

We expect that the typical fall benchmarking/market data process will look different for many oil & gas companies.

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We expect that the typical fall benchmarking/market data process will look different for many oil & gas companies. The current commodity price and general economic environment will likely impact compensation levels across much of the industry, which will cause a…

COVID-19’s Incentive Impact: While Most Companies Wait, Companies with Early FYEs are Forced to Act

We are increasingly participating in board-level discussions focused on how to ensure that management teams stay focused, engaged and properly incentivized.

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When the COVID-19 pandemic started to spread across the United States, boards of directors initially focused on ensuring the safety of their employees and customers and managing to stabilize their businesses for uncertain times ahead. Early on, many companies were…

How and Why Pre-Commercial Biotech CEO Pay is Different

Part One: Tailoring Pay to the Business

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The Say-on-Pay (“SOP”) era has fostered remarkable homogenization in executive compensation program design. The two primary contributing factors are: 1. Expanded compensation disclosure requirements for publicly traded companies, increasing the transparency of competitors’ programs. 2. The heightened influence of proxy…

Embrace the Use of Discretion in This New Era

Reprinted Director Advisory article in the July/August issue of NACD Directorship.

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So far in 2020, market volatility, economic uncertainty, severe business disruptions, and concerns over employee health have materially changed how leaders approach business planning. These breaks from the norm have and will continue to have an impact on compensation committees’ …

Banking Industry Response to COVID-19

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Introduction The 2020 Coronavirus (COVID-19) pandemic represents one of the most significant global events in recent history, resulting in unprecedented impact on our country’s economy, its businesses and its people. For our financial services clients, initial priorities focused on the…

Predicting the Future of E&P Bonus Design

The current oil and gas market challenges are testing the efficacy of prevailing bonus plan structures among exploration and production (E&P) companies.

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E&P bonus plans have historically aligned with growth and investment, focusing on volume (production and reserves) and cost reduction, measures that are more controllable by management and less impacted by commodity prices than earnings-based metrics. In recent years, investors and…