L&A Original Article: Compensation Risk Assessment- Supporting Your Claims & Avoiding Exposure

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In July 2010 Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act; primarily, as a response to the financial crisis of 2007-2009. A key provision under Dodd-Frank requires public company directors to determine if the company’s compensation and governance programs incentivize or exacerbate company risk. Additionally, this rule requires companies to provide commentary within their proxy statement or...

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L&A Original Article: Timing Long-Term Incentives

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Author(s): Ian Keas, Kyle Lamport and Sidney Diec Introduction We are now in the 8th year of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”). Among other things, the implementation of Dodd-Frank meant the majority of public issuers had to learn to navigate the waters of shareholder advisory votes on executive compensation, better known as “Say on Pay”....

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L&A Original Article: The Full Picture with Gender Pay Equity

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Is gender pay equity gap as big of an issue in 2018 as it has been in previous years? We are all told that gender pay equity is measured on the same scale, but in reality the gap virtually disappears when analyzing the same level, company, and function. Most articles cite “The Simple Truth about the Gender Pay Gap” graph...

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L&A Original Article: Incentive Plan Changes are Coming

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Over the past eighteen months, discussions on incentive compensation structures have been taking on a different element at a rapid clip in boardrooms across the country – as a result of investor pressures in the energy industry, annual incentive and long-term incentive performance metrics are getting the full health physical treatment.  As we move into the second half of 2018,...

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L&A Original Article: Q&A with Highlights from Tudor Pickering Conference

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L&A was recently invited to participate in Tudor Pickering’s 2018 Hotter N’ Hell Conference. Dan Pickering quizzed L&A’s Chris Crawford on recent executive compensation trends in the energy sector. Here are just a few highlights from that “fireside chat”. Q: It is a hot topic among shareholders, but does executive pay really matter to stock performance... isn’t it a rounding...

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L&A Original Article: What are We Paying For?

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Non Performance-Based Compensation Factors & Why they Matter Too Add together the volatile ingredients of egregious CEO pay articles, gender pay gaps, say-on-pay votes, CEO pay ratio legislation, media bias, market volatility, compensation lawsuits, collegiate athlete pay debate, the corporation of ISS, proxy board elections, etc. and it’s easy to understand why nearly everyone has a strong opinion on what...

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L&A Original Article: Reactions to CEO Pay Ratios – the Destructiveness of Double Standards

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The divisiveness of politics is reaching extremes in today’s climate. It’s incredible how the same story can be told by two different reporters and both will express the exact opposite information as fact. Walter Cronkite famously stated: “We all have our likes and our dislikes. But... when we’re doing news - when we’re doing the front-page news, not the back...

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L&A Original Article: Paying for Performance in Not for Profits

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DOWNLOAD THE WHITEPAPER With the recent passage of the 2017 Tax Act, more scrutiny continues to be applied to not for profit (NFP) organization compensation. This follows recent actions from various state and federal agencies upping the ante on not for profit compensation. As such, we believe there will be more pressure for NFP organizations to prove pay for performance....

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L&A Original Article: 2018 Proxy Season Preparations

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December – a time for reflection on the year that was, review of company performance…and a first look at the latest policy updates from proxy advisory firms like Institutional Shareholder Services Inc. (“ISS”) and Glass, Lewis & Co., LLC (“Glass Lewis”). While it may seem like the 2017 proxy season was just yesterday, we are looking ahead to what’s in...

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