The article discusses the enforcement of Dodd-Frank clawback policies under foreign law, focusing on executive compensation. The US SEC's Rule 10D-1 mandates the recovery (clawback) of incentive-based executive compensation in the event of accounting restatements. The NYSE and Nasdaq proposed listing standards to comply with this rule. The article explores how clawback policies could be enforced in various countries including Brazil, China, France, Germany, Hong Kong, Singapore, the United Arab Emirates, and the United Kingdom. It addresses aspects such as enforceability under local law, deducting amounts from future compensation, and provisions to enhance enforcement. The application of these policies varies across jurisdictions based on legal frameworks and regulatory guidelines.

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The article discusses the idea of expanding access to employee stock ownership plans (ESOPs) in order to protect Americans' retirement savings in a volatile economic environment. It points out that American retirees faced a 23% loss in their 401(k) savings in 2022, and the ongoing financial uncertainties caused by various factors necessitate finding ways to ensure retirement security. The article highlights the benefits of ESOPs, where employees have ownership in the companies they work for. A survey by the National Center for Employee Ownership (NCEO) indicates that workers at ESOP-owned businesses have greater retirement security, better employee retention, and superior retirement savings compared to workers in other companies. The article also mentions bipartisan legislation introduced to promote and expand employee ownership in private companies.

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The article discusses the practice of awarding "mega grants" to CEOs, which are large, one-time equity awards with long vesting periods, often granted in addition to or in lieu of annual awards. Mega grants are intended to provide significant incentives for CEOs to achieve long-term targets. The practice of mega grants has resurged in recent years, with CEOs receiving nine-figure awards, even though they were less popular due to shareholder criticism in the past. The article explores the reasons behind this change, including notable instances such as Tim Cook's mega grant at Apple and Elon Musk's performance-vested stock-option package at Tesla. The controversy surrounding mega grants is examined, along with proxy advisory firms' skeptical views and shareholder reactions. The article also delves into the characteristics of mega grants, such as recipient types, tenure, grant size, equity type, term, performance triggers, and more. It also explores the rationale behind issuing mega grants and the role of compensation consultants in recommending them. Finally, the article discusses the stock price reaction to mega grant announcements and raises questions about the impact of mega grants on CEO incentives and company performance.

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The SEC's Division of Corporation Finance issued 10 new Compliance & Disclosure Interpretations (C&DIs) on September 27, 2023, supplementing previous guidance on pay-versus-performance disclosure rules.

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Instacart’s long-awaited initial public offering on Tuesday made it one of the largest companies to go public this year, marking a potential turning point in the recent lull of public listings. But the grocery delivery service's employees could be the real victors of the stock market debut, as the company relies on sales from existing shareholders, including workers, to drive its stock price. “This IPO is not about raising money for us. It's really about making sure that all employees can have liquidity on stock that they worked very hard for,” Instacart CEO Fidji Simo told CNBC’s Dierdre Bosa on Tuesday.

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Women often don’t know what to ask for, experts say. And companies don’t tell them.

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The authors research found that people often overestimate the value of stock options when assessing a startup job offers. They incorrectly believe that a higher number of shares translates into superior compensation even when it doesn’t. Five steps can help you avoid this mistake.

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BDO USA plans to establish an employee stock ownership plan (ESOP) for 10,000 employees to address the shortage of accountants and retain talent. The ESOP will allow employees to have a stake in the company. BDO partners will sell 42% of their shares, and the plan will take about 20 years to fully vest. The firm secured $1.3 billion in private debt to fund the ESOP. This move aims to modernize the accounting industry's traditional business model and attract and retain skilled workers.

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The article discusses how few companies offer equity ownership to most employees, despite its potential benefits for engagement and wealth equality. It highlights the need for well-designed plans, policy support, and financial education to make this practice more widespread. Turning more stakeholders into capitalists can align with stakeholder capitalism principles.

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PwC's updated Stock-based compensation guide covers accounting principles, measurement, vesting, expense attribution, and classification for stock-based compensation, with insights and references to FASB guidance.

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