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February 2016 L-Blast: Retention Awards: A Top Ten List | Yahoo! Compensation Litigation – History May Not Repeat Itself but it Often Rhymes | 2016 Midstream Industry Compensation Survey Launches April 1

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Dear Friends,
It’s hard to believe we’re almost in March and proxies will soon begin to be filed. It feels like 2016 just started! But soon, very soon, executive compensation will be in the media like it always is this time of year. The good news is, corporate America is getting better at dealing with proxy season — and not just the proxies themselves, but also visiting and sharing their vision and how they’re using compensation to attract, retain and motivate the talent they have and need. Never before have we at L&A seen such a need for teams to be in sync. The companies winning today are the ones that can keep their teams together and build an equation like 1 + 1 + 1 + 1 = 10. Compensation, and how it is structured, helps position companies, boards and leadership for that equation.

We have some great articles for you in this month’s L-Blast. The first is an original L&A article on the
top 10 things to think about when considering retention awards. It explains how, what and why bonuses are paid in a distressed market.

The second article is an interesting read on compensation litigation. The Delaware Court of Chancery
has issued an opinion on a Section 220 demand made against Yahoo that’s very similar to the Disney case several years back. Disney’s case involved a CEO hiring a number two executive, who performed poorly, for excessively generous compensation and a no-fault termination after a year on the job. Yahoo’s situation has some interesting overlap.

Last but not least, we invite all midstream companies to participate in our third annual Midstream Industry Compensation Survey opening on April 1. We’ve included more details below.

As always, please let us know if there’s a particular topic you’d like to learn more about. We’re happy to investigate what’s important to you. We appreciate each and every one of you.
 
 
Sincerely,
Brent_Signature_white

Brent Longnecker and the L&A Team
Chairman and CEO
Longnecker & Associates
 


Retention Awards: A Top Ten List.

While many have been focused on the volatility in energy commodity prices since 2014, we at Longnecker & Associates note that volatility and uncertainty impact all industries at various times.

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Yahoo! Compensation Litigation – History May Not Repeat Itself but it Often Rhymes.

The Delaware Court of Chancery has issued an opinion on a Section 220 demand made against Yahoo! No complaint has yet been filed, and although Vice Chancellor Laster speculates on some inferences that can be drawn, no one has proven anyone has done anything wrong.

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2016 Midstream Industry
Compensation Survey Launches April 1.

At L&A, we’ve designed our 2016 Midstream Industry Compensation Survey to concisely and powerfully asses market trends and establish position benchmarks for companies in the midstream industry. This survey will capture current compensation trends as they relate to pay philosophy and practices, annual incentive strategy and methodology, long-term incentive strategy and vehicles, and retention-related practices. The survey is scheduled to launch on April 1, and final survey results will be available only to participants in August.

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