Insights

Current filters:Thought Leadership

Determining Annual Incentive Pay in a Pandemic

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

Posted by and on

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

Posted by on

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

Posted by and on

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.

Posted by and on

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.

Posted by , , and on

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

Posted by on

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.

Posted by on

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.

Posted by and on

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

Posted by on

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.

Posted by and on

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

Posted by and on

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.

Posted by on

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…

Survey Results: Oil & Gas Workforce and Compensation Strategies

Meridian surveyed fifty-eight companies in the E&P (n=40) and Oilfield Service (n=18) sectors in April to gauge the ongoing impact of COVID-19 and low oil price/demand on companies’ workforce and 2020 compensation programs.

Posted by on

Key Takeaways In our March survey results we reported an overwhelming majority of companies focused on emergency business actions and less on compensation considerations. As of the end of April, it appears companies have taken action on their now identified…

Executive Salary Reductions in Oil & Gas: What’s the Message?

Through 4/30 we have tracked nearly 60 energy industry companies that have announced CEO salary cuts, the most of any industry group in our COVID-19 database.

Posted by on

The fact that so many energy industry companies have reported salary reductions should not be surprising; the double black swans of record production and cratering demand have driven industry stock prices further down on average (-58%) than in any other…

Announced Retail Executive and Outside Director Pay Reductions

Since the onset of the COVID-19 pandemic in the U.S., Meridian continues to monitor the unprecedented actions taken by retailers.

Posted by and on

Since the onset of the COVID-19 pandemic in the U.S., Meridian has monitored the unprecedented actions taken by retailers to enhance financial flexibility and offset the substantial impact to operations associated with prolonged store closures. These actions have included eliminating…

How should oil & gas companies approach their 2020 annual bonus?

“Wait and see” seems to be the mantra of the day, particularly when it comes to an energy company’s annual bonus plan.

Posted by and on

“Wait and see” seems to be the mantra of the day, particularly when it comes to an energy company’s annual bonus plan. We think that’s a prudent approach for the moment, as much uncertainty remains among the energy industry and…