Articles & Whitepapers

Current   I   Archived

Compensation Committee Approval of Annual Stock-Based Incentive Awards - Key Considerations & Process Steps
by Steve Van Putten
Published in Boardmember.com - February 2010

An examination of the specific factors that Compensation Committees should consider in determining the design and level of stock awards, as well as in evaluating the aggregate pool of shares delivered to employees.

Addressing Salary Compression in Any Economy
by Rebecca Manoli
Published in Workspan - December 2009

As pay discretion becomes a thing of the past and the economy turns around, companies must be especially mindful of the risks that salary compression will develop.

Roadmap for Compensation Risk Assessment
by Yvonne Chen
Published in Complinet Informer - November 2009

A review of pending regulation and an outline of three key steps to help companies and their compensation committees prepare for disclosure of pay-related risk.

Effective Compensation Risk Assessment at the Board Level
by Greg G. Stoeckel

The key to successfully managing compensation-related risk is not inspecting quality at the end of the program design process, but rather building quality directly into the process.

Using SERPs to Create a Balanced Executive Compensation Program
by Peter Lupo & Bruce Brownell

Stock price alone does not always correlate with either executive performance or sustainable long-term shareholder value.

Keep it Simple
by Peter A. Lupo
Published in Workspan - October 2009

Complexity is worth the trade-off in some situations, but companies are best off keeping program designs as simple as possible -- especially in an uncertain economy.

Executive Incentive Practices Post-TARP
by Susan O'Donnell
Published in Bank Accounting & Finance - August 2009

An examination of emerging trends in incentive use among all companies in the wake of a host of new regulatory initiatives, including: what went wrong; how pay programs are changing post-TARP; and expected best practices going forward.

Protect Your Bank's Future
by Susan O'Donnell
Published in Bank News - June 2009

Successful companies treat succession planning as a critical element of business strategy, centered around an ongoing process of dialogue and review that is continually re-evaluated and updated to suit evolving needs.

Navigating Underwater Options: Examining Option Exchanges & Alternatives
by Jim Heim and Michael Enos
Published in Workspan - May 2009

Determining if an option exchange is the best way for your company to deal with underwaters - and when an alternative approach might be more appropriate and effective.

Holistic Pay Modeling: Getting the Complete Executive Pay Picture
by Melissa L. Means
Published in WorldatWork Journal - May 2009

What's often missing from compensation oversight is a more far-reaching and into what a particular executive has the potential to earn. A holistic, or dynamic, pay analysis provides a specific line of sight into how each component of a complex executive compensation program will behave singly and cumulatively over both the short- and long-term and for the full range of stock and performance outcomes.

Battle Ready: Arming Your Company to Manage Talent During M&As
by Yvonne Chen
Published in Workspan - April 2009

Immediate steps HR must take in the event of a mergers and acquisitions battle, and an effective framework for retaining key talent during and after the transaction.

2009 Top 10 Executive Compensation Issues in the New Economy

10 key issues related to plan design and corporate governance that Boards will be grappling with in 2009, with recommendations for best practices and pitfalls to avoid.

Staying One Step Ahead: The "New" Top Ten Issues in Executive Compensation

A look at the major topics of attention likely to face Compensation Committee members in regard to their oversight of executive pay programs.

Risky Business: Assessing and Addressing Executive Compensation Risk
by Susan O'Donnell & Laura Hanf

An effective framework for identifying and analyzing compensation-related risk that, while specific to TARP participants, suggests best practice guidelines for all companies.

Executive Pay Oversight in an Economic Crisis
by David N. Swinford and Mark J. Rosen
Published in Directors Monthly - January 2009

Governance lessons that address executive compensation, without the need for further regulation.

The Consultant Zoo
by Peter A. Lupo
Published in Directorship - December 2008

A brief overview of some common consulting styles and how, taken to an extreme, they might not serve a Compensation Committee's best interests.

Dynamic Pay Modeling - A Holistic Approach to Executive Pay
by Melissa Means

In today's governance environment, companies can benefit group from a more dynamic analysis of how the individual elements of complex executive compensation programs will behave singly and cumulatively, now and over the long-term, under a full range of possible performance outcomes.

Octane-Driven Performance
by Peter A. Lupo
Published in Workspan - November 2008

A look at three long-term incentive plan designs that can be tuned for very high levels of performance.

Where Common Sense Rules
by Yvonne Chen
Published in Directorship - October 2008

Sensible guidelines for steering the relationship between committees and their consultants in the right direction, whatever the engagement.

To Have or Have Not – Securing Executive Talent in an IPO
by Theo Sharp and Chris Moore

Key considerations for companies that are going public in deciding whether and how to structure severance or change-in-control (CIC) arrangements, including a survey of marketplace practices in 2007.

The Compensation Committee: From Competence to Excellence
by David N. Swinford and Matt Vnuk
Published in Directors Monthly - October 2008

Critical practices for Directors to achieve improved performance, better relations with management, a sound public image and greater efficiency.

Peer Group Pitfalls: Overcoming Five Common Selection Obstacles
by Jim Heim
Published in Workspan - October 2008

Amidst growing scrutiny of the benchmarking process, companies need to put significant thought into the peer group selection process.

Get Smart: An Effective First Year on the Compensation Committee
by Jannice Koors and Lianne Chew
Published in Directors Monthly - September 2008

The tools needed by new committee members to understand how the board operates and to have a productive first year.

Bullet-Proof Your Compensation Program
by Aria Glasgow
Published in Workspan - September 2008

Six steps to help compensation professionals manage programs in an uncertain economy.

Fear of the Unknown
by Theo Sharp
Published in Directorship - June 2008

A look at deliberate and specific actions that Boards can take to help mitigate compensation-related risks.

The (Slowly) Changing Face of the Board
by Jan Koors and Lianne Chew

Recent research that shows the changing Boardroom profile and how Board compensation is evolving.

Six Steps to Implementing Performance Metrics in LTI Plans
by Melissa L. Means
Published in Workspan - May 2008

Key issues in designing an effective and simple performance-based LTI plan, including special considerations for organizations that may have difficulty setting goals over a long-term period.

To Disclose or Not to Disclose: Performance Targets and the SEC
by Edgar H. McGaughey III and Deborah Lifshey
Published in Directors Monthly - March 2008

Six steps for determining the need to report performance metrics, including issues related to the use of competitive harm arguments.

What Every Compensation Committee Should Ask Its Consultant
by David Swinford
Published in Director's Monthly - November 2007

When interviewing a prospective consultant, compensation committees cannot overlook the kind of penetrating questions that a ddress the likely fit between committee and advisor.

Tips for Your Year-End Compensation Reviews
by Peter Lupo
Published in Workspan - November 2007

How companies can utilize the flood of new compensation data available under new SEC proxy disclosure rules to improve annual program reviews, without muddying the decision-making process.

How to Build a Compensation Program Based on Business Strategy
Published in IOMA's Complete Guide to Best Practices in Pay-for-Performance - November 2007

An approach to effectively linking compensation strategy to business strategy throughout the organization.

The Right Stuff: Principles to Guide Effective Compensation Governance
by Matt Stinner
Published in Directorship - October 2007

Seven key areas where board members can take immediate action to improve their oversight and management of executive compensation programs.

Understanding and Managing Compensation Survey Data Conflicts
by Ken Cardinal
Published in Workspan - September 2007

Resolving inconsistencies among different survey sources is critical to maintaining the applicability, precision and reliability of the data on which compensation decisions are based.

Setting Shareholder-Focused Performance Targets
by Matt Turner
Published in Financial Executive - September 2007

Rigorous performance measure selection and target-setting reduce emotions and politics, resulting in more effective and shareholder-focused incentive arrangements.

No More ‘Holy Cow’ Moments
by Melissa Means
Published in Directorship - September 2007

An innovative way of reviewing executive compensation programs can provide a more complete picture of total pay.

Top 10 Issues in Executive Compensation
Published in IOMA's Complete Guide to Best Practices in Pay-for-Performance - September 2007

A look at some leading issues on the executive compensation and governance horizon.

The Battle of the High Performers: Equity Vesting Alternatives that Make a Difference
by Peter Lupo
Published in Workspan - July 2007

Adding achievement metrics to an equity grant may be more advantageous under new SEC reporting rules, which require that companies explain how executive compensation programs are structured to support a strong pay-for-performance orientation.

Director pay in emerging firms
by Joseph Rich
Published in Directors & Boards - May 2007

Tailoring Board compensation to a new organization's stage of development, industry and size is key to ensuring the kind of appropriate pay arrangements that have become a critical measure of good governance.

How Compensation Committees Can Do a Better Job
by David Swinford
Published in Director's Monthly - March 2007

The compensation committee's overarching responsibility today is to ensure that future leaders are identified and fostered in advance of a management crisis - and that requires reexamining every aspect of how members discharge their duties.

Key Inputs to the New CD&A You Should Be Reviewing Now
by Susan O'Donnell
Published in NACD Directors Monthly - October 2006

The new Compensation Discussion and Analysis (CD&A) in corporate proxies is an opportunity for companies to look beyond market analysis and peer groups to refine pay-for-performance strategies.

Reader Profile - Preparing for New SEC Disclosure Rules
by Theo Sharp
Published in Directors & Boards - September 2006

A Q&A discussion of issues facing companies in complying with extensive new proxy disclosure of executive and Director compensation.

Essentials for Avoiding Overcompensating
by David N. Swinford
Published in Financial Executive - September 2006

Common mistakes that result in compensation packages out of proportion to the results delivered.

Director Pay: A Work in Progress
by Jannice L. Koors
Published in Corporate Governance Advisor - September 2006

Pearl Meyer & Partners' seventh annual survey of Director compensation finds a steep and continuing rise in pay for members of Boards and key committees.

New SEC Options-Pricing Rules Aim at Clarity, Transparency
by Mark Rosen
Published in Financial Executive International - August 2006

New SEC disclosure rules make stock option irregularities a sin of omission, rather than commission.

5 Trends Driving Change in Executive Compensation Programs
by Joe Mallin
Published in GoodBusiness - March 2006

Negotiating a compensation environment of heightened governance demands, increased investor expectations and new compliance pitfalls.

Three "Simple Solutions"
by Joseph R. Rich
Published in Boardroom Briefing - January 2005

Why simplistic solutions to curbing excessive executive pay won't work.

Trends in Tally Sheet Use

Summary of PM&P's survey of how 107 companies are utilizing tally sheets to help track compensation.

The Art and Science of the Match, or Why Job Matching Keeps Me Up at Night
by Kenneth R. Cardinal
Published in Workspan - February 2004

Relegating job matching to a junior staff member with little background or training can have serious consequences.

Director Pay: Taking the Lead

Board compensation is being recalibrated and restructured as greater time demands and stricter requirements for members' independence and expertise create recruitment challenges.

2004 Year End Regulatory Changes Spur 2005 Board Action

New SEC disclosure rules are an opportunity for companies to make far-reaching and meaningful changes to executive compensation programs.

Paying for Performance in a Down Market

When uncontrollable external forces hit the bottom line, companies should consider alternative performance measures.