Because ISS reports and positions on executive pay are widely reviewed and considered by investors, comp managers need to be aware of the principal concerns ISS has, says Lifshey, managing director at the New York office of Pearl Meyer & Partners. She offered her executive pay tips at a recent webinar sponsored by BLR® and HR Hero®.
Category Archives: Executive Compensation
How to determine and deliver compensation, deferred compensation, equity compensation, and perquisites to upper level managers and corporate officers.
"As ISS (Institutional Shareholder Services) exerts so much influence over shareholder perceptions and actions, it is important for compensation managers to be familiar with ISS’s hot buttons, says consultant Deborah Lifshey."
"Shareholders are none too shy about voicing their approval and disapproval, but comp pros can benefit from knowing the public’s “breaking point” for each pay element, says consultant Kurt Fichthorn."
"Compensation managers who base executive pay decisions on total direct compensation are likely to “miss the market by a mile,” says consultant Kurt Fichthorn."
"Yesterday’s Advisor covered consultant Deborah Lifshey’s top ten Dodd-Frank requirements; today, the “Say on” obligations, plus a solution to the most basic challenge in comp—job descriptions."
Lifshey, who is Managing Director at the New York Office of Pearl Meyer & Partners offered her “say on” tips at a recent webinar sponsored by BLR and HR Hero.
Say on Pay requires non-binding advisory vote on compensation of Named Executive Officers. says Lifshey. The requirement is effective for any shareholder meeting occurring after January 21, 2011.
"Dodd Frank and its various “Say on” requirements offer 10 key challenges related to compensation, says consultant Deborah Lifshey. Although about half are not currently applicable, it’s still hard to plot a reasonable course."
The Dodd Frank Act (Dodd Frank Wall Street Reform and Consumer Protection Act) was signed in 2010 as a culmination of efforts to regulate and limit Wall Street as result of the mortgage fallout, says Lifshey, Managing Director at the New York Office of Pearl Meyer & Partners.
Lifshey’s tips came at a recent webinar sponsored by BLR and HR Hero.
"In yesterday’s Advisor consultant Kurt Fichthorn outlined the “hot buttons” the ISS (Institutional Shareholder Services) looks for in executive compensation packages. Today, his take on trends in exec comp, plus an introduction to the all-compensation-in-one website, Compensation.BLR.com."
Fichthorn , vice president in the Philadelphia office of Hay Group, was joined in his presentation at a recent BLR/HRhero webinar by Martin Somelofske, a senior principal in Hay Group’s Metro New York office. Fichthorn suggests that the following trends will characterize executive compensation in the upcoming year:
"ISS (Institutional Shareholder Services), which alerts shareholders to executive pay problems, might seem to be losing influence, says consultant Kurt Fichthorn, but every compensation committee in America continues to be aware of the ISS standards around executive pay."
During the 2011 proxy season, shareholders seemed to be less influenced by ISS on say on pay, says Fichthorn, vice president in the Philadelphia office of Hay Group. He was joined in his presentation at a recent BLR/HRhero webinar by Martin Somelofske, a senior principal in Hay Group’s Metro New York office.
"In yesterday’s Advisor, consultant David Wudyka offered insights on designing executive pay plans; today, more of his tips, plus an introduction to BLR’s new Compensation Analyzer."
Wudyka is managing principal of Westminster Associates in Wrentham, MA. His tips came at a recent BLR/HRhero-sponsored webinar.
Perquisites are benefits unique to executives, says Wudyka. As some may be taxable, always clarify that issue before finalizing your plan. Some examples of perquisites:
"Executive compensation is sometimes called the “third payroll,” says consultant David Wudyka. There’s a general compensation strategy for exempt and nonexempt, but execs are paid differently, he adds."
There are different types of incentives for executives, and taxation becomes increasingly important in compensation planning, says Wudyka, who is managing principal of Westminster Associates in Wrentham, MA. His tips came at a recent BLR/HRhero-sponsored webinar.
Motivating Executives Is a Challenge
"Striking the right balance with your executive compensation plan can be tricky to say the least. But before you can even begin to have your executive compensation appropriately reflected in your payroll, you need to understand the terminology involved in executive-level compensation discussions."
This will help you understand the key elements that every good executive compensation program includes, and ensure you’re knowledgeable about the broad strategies and concepts involved with designing (or re-designing) and administering a successful executive compensation program.