As we begin to close out 2016, we at L&A would like to thank you for your continued support over the last year. We strive to bring you content that is relevant and industry specific to better your businesses. We hope each of you have a restful holiday season with family and friends and that 2017 is prosperous and positive for you.
In this month’s original article, we explore a different perspective regarding proxy advisors. As the discussion around Say on Pay and Equity Plan approvals evolves, so too have the qualitative policies of proxy advisors. This article highlights some factors which may be concerning to companies in the process of gaining approval of a new equity or equity plan amendment. Recent case studies indicate some companies, after opting into subscriptions with advisory firm consulting services and following suggestions, did not receive a passing recommendation due to obscure qualitative policy. We are certain you will find this article interesting and relevant.
The second article we have has drawn international headlines around the world. Portland recently announced a first-of-its-kind tax on public companies that pay their chief executives vastly more than they pay their median worker. In fact, this tax is intended to target publicly traded companies with top executive salaries at least 100 times higher than the salary of a median worker. Given some of the preliminary CEO Pay Ratio figures that have been disclosed in recent proxies, we found this development to be extremely interesting.
The third article concerns the U.K Government proposing changes to the way executive pay is set and company boards are structured at closely held companies, in what may be an effort by the new Prime Minister to crack down on corporate excess. The article highlights concerns on the proposal from various perspectives, including a post-Brexit government, business viewpoint and employee impact.
As always, please let us know if there are particular topics you’d like to learn more about. We appreciate each and every one of you. Happy Holidays!
Brent Longnecker and the L&A Team
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