Size & CEO Pay
Size & CEO Pay Part 2 in series: “What Matters in CEO Pay?” Size matters. Both company size and CEO pay size matter a lot! While this doesn’t seem like a wild statement, this fact gets tested over and over, most recently with one of the most widely- known executives in the world, Elon Musk, […]
Compensation Committee Considerations 2024
At this time last year, 72% of CEOs were expecting a recession in 2023. While the circumstances underlying that prediction have evolved (hypergrowth and hyper-inflation have tapered off), and the Russell 1,000 has returned 18.3% YTD. In short, the market is volatile and predictions are difficult!Over the past year, as we have worked with our […]
Telling the Compensation Story Through Reported and Realizable Executive Compensation
Executive compensation is a hot topic in the corporate governance world. The discussion and evaluation of the fairness of executive pay practices has ramped up considerably since the arrival of Dodd-Frank, evolving as investor expectations and disclosure trends among public issuers have changed. Last year, the SEC finalized disclosure rules on how companies should communicate […]
CEO to NEO Pay Index Matters
When we conducted a three year (2019 – 2022) pay and performance comparison of the top ~2,000 public companies (by market cap), we found CEO pay that was too far removed from the other named executive officers (NEOs) resulted in an inefficient relationship between the amount of compensation delivered and shareholder return generated. Specifically, companies […]
Solving Compensation Whiplash
Compensation Whiplash – the movement of compensation up and/or down so rapidly it gives you a headache. The recent labor market has hit HR/Compensation departments with a nasty concoction of variables – unprecedented labor market volatility, commodity price swings, hyperinflation, the great resignation, silent resignations, remote work, DEI, and 5 generations working together at the […]
A New Currency: Work From Home
A New Currency in the Compensation Toolbox: Work From Home If necessity is the mother of invention, then the COVID pandemic is the mother of a new compensation currency: Work From Home (WFH). The Evolving Compensation Toolbox The total compensation toolbox has evolved rapidly over the last 30 years. For most of the 20th century, […]
What Job Seekers are Looking For
What Job Seekers Are Looking For Job seeker preferences are shifting – with candidates now indicating that the right salary/benefits takes priority over other elements (like the flexibility of remote work) when considering a new role. That’s the headline from a recent survey conducted by Sense, an AI-driven solutions provider for enterprise recruiting, which polled […]
Future State of Remote Work
Future State of Remote Work A recent study conducted by Gallup found that as pandemic-related restrictions have eased, so has the prevalence of fully remote work for “remote-capable” employees. With Gallup estimating 70M+ full-time employees in the US capable of working remotely, and the current tightness in the labor market, how companies define the “workplace” […]
Recession-Proof Compensation Strategies
Strategies for a Recession-Proof Compensation Plan The Market Background The stock market is down approximately 22% year to date (S&P 500 and Russell 2k) and US GDP has dropped in the last two quarters. By many economists’ measures, this defines the beginning of a recession. And while recessions and higher unemployment typically go hand in […]