Our Insights

Executive Compensation: Shareholder Expectations and Proxy Trends

Many of the issues related to executive pay today have emerged because of shortfalls with stock options during the 1990s. Companies’ responses to these issues are beginning to set some trends, including the use of alternative LTI vehicles, increased emphasis on ownership guidelines, and changes to option mechanics. Read more

Choosing & Using the Right Measures & Goals in Long-Term Compensation Plans

Many companies are now adopting or considering long-term incentive plans where value realized by participants is contingent on achievement of specific performance goals, which are often not based on stock-price. While these types of plans provide opportunities to focus management on results that will drive shareholder value, they don’t come without significant risk of unintended consequences. Read the transcript of Roger Brossy and Richard Semler as it appeared in the WorldatWork Society of Certified Professionals Member Chat. Read more

Adapting Stock Plans to New Realities

For the last decade, the toughest question many companies faced about long-term compensation was: "How many stock options should we give out, and to whom?" Today, we are in the midst of unprecedented change in every aspect of long-term and stock compensation, and plans and practices need to be examined in light of new accounting rules, increasing shareholder scrutiny, and changing employee attitudes. As U.S. companies review their current stock option or other long-term compensation plans, the tried and true assumptions on what's right or even what works are already problematic at best. Companies need to plan how to adapt now, or evolution is likely to pass them by. Read the entire article (PDF) written by Roger Brossy and Richard Semler. Read more

Professional Services Firms: Building a Franchise, Supporting It With Talent

Tough market conditions and numerous rude awakenings present professional services firms with an opportunity to take stock with respect to the aggressive growth strategies in which they have been engaged. We offer the best and most timely talent management remedies for building and supporting a successful professional services franchise. Read the entire article (PDF) written by Roger Brossy. Read more

Beyond the Whim of the Market: Performance Alternatives to FMV Stock Options

Explore a number of tried and true solutions as well as creative new solutions for designing an equity incentive program that emphasizes performance and motivates employees through better line-of-sight. Includes a comparative review of various equity incentive structures, encompassing strategic goals and design considerations, tactical considerations, as well as the cost of those solutions. Read more

Assessing CEO Performance: It Goes Beyond the Numbers

Most Boards rely solely on the corporation’s financial performance. But by their own admission, many compensation committee members agree that measuring a CEO’s ability to establish strategic direction, build a management team, and lead is more critical than certain quantitative measures. Read the entire article (PDF) written by Seymour Burchman. Read more