Shareholders Focus on Pay Practices

March 24, 2015

In this article we're sharing, "Shareholders Focus on Pay Practices," Andrew McIlvaine details how activist shareholders are calling on several large companies to focus on issues such as the pay gender gap and employee motivation. According to Chris Crawford, our President here at L&A, "This is all part of the pay divide issue that will continue to grow right up to the 2016 elections. The snowball will only get bigger." You can read the article here. As always, let us know if you have any comments or questions!   share

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Corporate Sustainability: The Board’s Role in Oversight

March 19, 2015

In this article we're sharing, MCC (Metropolitan Corporate Counsel) interviews Robyn Bew, director of research, National Association of Corporate Directors (NACD), which recently published its Director’s Handbook on Oversight of Corporate Sustainability Activities.   Some of the questions addressed in this interview include:   1) People often think of corporate sustainability activities in terms of environmental, energy or corporate philanthropy-related issues. How does NACD define sustainability?   2) Why is sustainability a board-level issue?    3) Do boards typically place these oversight responsibilities in a dedicated sustainability committee?    4) What is the impact of increased investor attention to sustainability practices on company disclosures, and what are the particular implications for audit committees?   5) What information do directors want from…

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Headwinds and Tailwinds for Oil & Gas

March 12, 2015

We thought we'd share this great article, "Headwinds and Tailwinds for Oil & Gas"  written by Chris Reinsvold, Vice President at Pearson Partners International.   Reinsvold wrote, "Longer term drivers of opportunity (tailwinds) and challenges (headwinds) can shape an industry, create winners and losers, and reward those leaders and organizations that develop effective strategies to deal with future possibilities. We asked over 200 senior leaders from across the oil & gas industry to look ahead five years to identify the key factors, both positive and negative, that might affect their industry segments. In this article we take a closer look at those long-term tailwinds and headwinds, comparing the responses from oil & gas company executives with those from the supplier…

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Tailor Incentive Compensation to Strategy

March 9, 2015

Because incentive compensation structure is one of the tools top management uses to pursue corporate goals, it must be made consistent with strategy. When designing the structure, a company's top executives should think of it in terms of four aspects of corporate policy: short run versus long run, risk aversion versus risk taking, interdivisional relationships, and company-division relationships. This article considers all of these aspects in the context of six elements of incentive plans: financial instruments, performance measures, degree of discretion in allocating rewards, size and frequency of awards, degree of uniformity, and funding. To read the full article, click here.     share

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The M&A Lynchpin: Success or Failure Starts with HR

February 27, 2015

Written by: Brent Longnecker, Kevin Kuschel, & Jordan Welch   The market for merger and acquisition ("M&A") activity increased sharply in 2014, largely as a result of the abundance of available cash and zero interest rate policies.  According to a recent Proxy Mosaic analysis, the US market announced 9,814 deals amounting to over $1.5 trillion in value.  Even more surprising is projections point to an uptick in M&A activity in 2015.  So, while the desire for M&A is obvious, why is it that more often than not deals end up being considered a failure?   A significant amount of time and effort is put into the front side of every deal, including research, meetings, due diligence, and did we mention…

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A First Look at ISS’ Equity Plan Scorecard

February 18, 2015

As announced in their draft rules published in December, ISS is adopting an Equity Plan Scorecard Model (EPSC) that is intended to consider a range of positive and negative factors rather than their traditional "pass" or "fail" tests. They are hoping to use this new model to evaluate long-term equity incentive plan proposals. The final EPSC score will help in determining whether they will recommend "for" or "against". The updated guidelines went into affect for all public companies with annual meetings on or after February 1st of this year.   To read more on this article, click here.    share

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Hear Ye, Hear Ye: Is ISS Starting to Listen? Yes and No…

February 3, 2015

Last month ISS "inflated" a new game ball with a new policy update for peer group selection in the energy industry. They have decided to move from peer selection on revenue to that of market cap. We discuss at length the issue and wonder if this will be coming for other industries as well.  Read the full article written by L&A here: Hear Ye, Hear Ye: Is ISS Starting to Listen? Yes and No…. share

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Choosing a Strategic Compensation Consultant

December 30, 2014

Choosing the right consulting firm is more important than ever before.  How do you know which type of consulting firm is best suited to meet your needs? This article breaks down the different types of consulting firms and how each accommodates to a particular type of service.  Learn what questions you should be asking and how this process should look to find the best consultant for you. To read more on this article, click here. share

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ISS and Glass Lewis Continue to Clinch the Purse Strings

December 11, 2014

There is one looming question for public company management teams and board of directors which always creeps into discussions related to compensation planning: How much will ISS and Glass Lewis move the target for their pay-for-performance and governance models in the coming year?  Both companies recently released their changes for the 2015 guidelines with minor revisions to their pay – for – performance models.  This is the first year in which neither company made major revisions to their models but rather focused more on over-arching governance issues.  L&A has outlined the major governance and compensation-related changes below but recommends clients review all the new guidelines directly from ISS and Glass Lewis.   To read more on this article, click here. share

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