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THE INFLUENCE OF EQUITY GRANTS ON SAY-ON-PAY SHAREHOLDER SUPPORT

In today's corporate landscape, shareholder opposition to compensation proposals is on the rise. This has elevated the importance of shareholder engagement in executive compensation decision-making. In 2022, median support for say-on-pay proposals hit an all-time low, with a record number of companies receiving less than 70 percent investor backing. Equity pay, a significant part of executive compensation, often plays a pivotal role in shaping shareholder sentiment. Consequently, compensation committees are increasingly evaluating strategies to address or preempt shareholder discontent.

Our expert panel will dive into these critical dynamics and examine a compelling case study illustrating how a company addressed low shareholder support attributed to its equity compensation practices, offering practical insights into real-world challenges and solutions.

Key learning points:

  • Compensation committee responses: Explore how compensation committees respond to low shareholder support on say-on-pay proposals, including the common drivers behind diminished support and the resultant impact on voting outcomes in subsequent years.
  • Effective shareholder engagement: Learn from companies that have faced historically low support levels and discover the strategies and practices that have enabled them to rebound through more effective shareholder engagement.
  • Impact of responsiveness: Understand the significance of responsiveness in compensation decisions, spanning from low to high levels, and how these levels can directly influence shareholder support and overall company performance.

 

 

CPE CREDIT HOURS: 1.5*

Field of study: Specialized Knowledge
Levels: O
Delivery method: Group live
Advanced preparation: None

CEP Continuing Education (CE) credit:1.25 credits

Please visit our Continuing Education and Event Policies pages for more information.

Speaker/Author

Valeriano Saucedo, ISS Corporate Solutions
Carmen Luk,  ISS Corporate Solutions

Event date
Wednesday, 25 Oct 2023, 10:45 - 11:35
Plan type
Country

LOOKING FORWARD, LOOKING BACK: A YEAR WITH PAY VERSUS PERFORMANCE AND THE ROAD TO MANDATORY CLAWBACK POLICIES

As we approach the close of 2023, join our panel discussion for insights into the first year of Pay Versus Performance disclosure regulations and the imminent Mandatory Clawback policies. These policies, though distinct, share a common goal: enhancing the equitable distribution of equity compensation. 

Join our expert panel for a comprehensive overview of the evolving landscape of equity compensation policies and their impact on corporate compliance.

Key learning points:

- Reflecting on Pay Versus Performance: Gain insights into the challenges and progress made in implementing the SEC's Pay Versus Performance Disclosures. Real-life examples will illustrate successes and challenges in compliance, offering valuable lessons.

- Preparing for mandatory clawback: Discover how listed companies are gearing up for the forthcoming mandatory clawback policy, set to take effect on December 1, 2023. Learn about the financial reporting implications and the reporting requirements for compensation recovery procedures in annual reports.

- Applying lessons learned: Explore the practical lessons from the Pay Versus Performance experience and how they can inform the design and execution of the Mandatory clawback policy. Gain a comprehensive understanding of best practices to ensure compliance with these regulations and future developments.

Speaker/Author

Chris Dohrmann, FGE, Global Shares - a J.P. Morgan company
Michael Gorski, Semler Brossy
Sinead Kelly, Baker McKenzie

Event date
Wednesday, 25 Oct 2023, 09:30 - 10:30
Plan type
Country

GLOBAL EXECUTIVE COMPENSATION TRENDS

Delve into the dynamic world of global executive compensation trends, with a spotlight on the role played by equity compensation. Explore how these trends align with your organization's objectives and challenges, including talent attraction and retention, program management, and plan design.

Key learning points:

  • Strategies for attracting and retaining top global executive talent through equity compensation.
  • Effective program management and implementation considerations.
  • Leveraging equity compensation in plan design to align with global executive compensation trends.

 

 

CPE CREDIT HOURS: 1.5*

Field of study: Specialized Knowledge
Levels: O
Delivery method: Group live
Advanced preparation: None

CEP Continuing Education (CE) credit:1.25 credits

Please visit our Continuing Education and Event Policies pages for more information.

Speaker/Author

Kelly Davis, KPMG
Robyn Shutak, Infinite Equity

Event date
Wednesday, 25 Oct 2023, 08:30 - 09:30
Country
ARTICLE
18 July 2023
UNITED STATES – SOURCING OF MULTI-YEAR COMPENSATION FOR SOCIAL SECURITY TAX
external article

SOURCE: KPMG

USA

 

The U.S. IRS released a memorandum, offering guidance on how to source income from restricted stock units (RSUs) for U.S. Social Security (FICA) purposes when the vesting period spans multiple tax years. This guidance provides employers with some clarity on adapting income tax regulations to apply to FICA tax, reducing uncertainty and potential issues during IRS audits. While the memorandum is specific to RSUs granted to U.S. citizens and residents, its principles can be applied more broadly to other forms of multi-year compensation, nonresident aliens, and different types of employers.

ARTICLE
2 June 2023
EQUITY COMPENSATION FOR START UPS
external article

SOURCE: Cake Equity

USA

This article provides an overview of equity compensation for startups, explaining how it aligns employee interests with the company and helps attract and retain talent. It covers various types of equity compensation plans, their benefits, and considerations, highlighting the importance of careful planning and expert guidance to create a suitable compensation package.

ARTICLE
30 May 2023
EMPLOYEE STOCK OWNERSHIP PLANS ARE AN OVERLOOKED TAX UNICORN
external article

SOURCE: Bloomberg Tax

USA

 

The article highlights the tax benefits of employee stock ownership plans (ESOPs) for closely held companies, including capital gains tax mitigation, corporate income tax deductions, and increased after-tax cash flow. ESOPs also offer long-term employee benefits, stakeholder alignment, and continuity, making them advantageous, especially in high-tax states like California.

ARTICLE
14 June 2023
EXECUTIVE COMPENSATION
external article

SOURCE: Andreessen Horowitz

USA

 

The article emphasizes the importance of a comprehensive compensation plan beyond salary to attract and retain top talent. It provides guidance on designing a competitive plan that incorporates benefits, equity-based programs, and career advancement opportunities, highlighting the benefits of a well-structured plan in supporting business strategy, recruitment, motivation, and market competitiveness.

ARTICLE
29 June 2023
HOW TO CREATE A DESIRABLE COMPENSATION PLAN
external article

SOURCE: Busniess News Daily

USA

This article emphasizes the importance of developing a comprehensive compensation plan that goes beyond salary to attract and retain top talent. It provides guidance for small business owners and HR managers on designing a competitive compensation plan that includes elements such as benefits and equity-based programs, highlighting the benefits of a well-structured plan in supporting business strategy, recruitment, motivation, and market competitiveness. The article concludes with recommendations on creating an outline, appointing a manager, determining a philosophy, setting pay rates, establishing career advancement opportunities, finalizing policies, gaining leadership approval, implementing a communication plan, and monitoring the plan's effectiveness.

ARTICLE
31 May 2023
CEO'S GOT SMALLER RAISES. IT WOULD STILL TAKE A TYPICAL WORKER TWO LIFETIMES TO MAKE THEIR ANNUAL PAY
external article

SOURCE: Apnews.com

USA

 

The article discusses the relatively small growth in CEO pay for S&P 500 companies, highlighting the persistent pay gap between CEOs and workers. Despite the modest increase, CEO compensation remains significantly higher than that of typical workers, with potential steeper pay cuts expected in 2023 due to the stock market downturn.

LIVE WEBCAST
17 October 2023, 12 - 1:15pm EDT
PAY VS. PERFORMANCE: 2023 LESSONS LEARNED AND CONSIDERATIONS YEAR TWO
Webcast

SPEAKERS: Nathan O'Connor, Equity Methods, Sinead Kelly, Baker McKenzie

Legal and regulatory
USA

The SEC's final Pay vs. Performance (PvP) rule, released in August 2022, triggered a frantic race among issuers to understand and comply with its complex requirements. As a result, the 2023 proxy season became unforgettable for proxy preparers at both issuers and service providers. Equity Methods invites you to join their webcast, where they delve into their PvP database, housing over 600 PvP disclosures.

The webcast will provide a recap and summary of actual PvP disclosures filed in this year's proxies, along with important lessons learned by practitioners. Additionally, the discussion will cover emerging best practices and highlight considerations for companies as they prepare for their second PvP disclosure in 2024.

Key Learning Points:

  • Understanding the impact of the SEC's final Pay vs. Performance rule on issuers and service providers during the 2023 proxy season.
  • Recap and analysis of actual PvP disclosures filed in proxies, offering insights into compliance and disclosure strategies.
  • Identifying best practices that have emerged from the PvP disclosures and outlining important considerations for future PvP disclosures.

 

CPE CREDIT HOURS: 1.5*
Field of study: Specialized Knowledge
Levels: O
Delivery method: Group Internet-Based
Advanced preparation: None

CEP Continuing Education (CE) credit:1.25 credits


*CPE credits are provided for live webcasts only. Please visit our Continuing Education and Event Policies pages for more information.
 

COST
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GEO non-members*: $85 

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*Fees are non-refundable. Recordings are available to access on-demand following the webcast.


Registration is required. Connection and login instructions are sent to registered participants prior to this webcast.