Tag Archives: compensation

Europe flatters the UK as proposals for a “say-on-pay” are announced

They say imitation is the sincerest form of flattery. The European Commission has announced proposals to overhaul shareholder powers on executive pay, with several provisions seeming to imitate the new regulations that apply to UK incorporated companies that are listed on the Stock Exchange. Did the Commission really mean to flatter the UK government? The … Continue Reading

Directors’ Remuneration Reports – Consistently different: the FTSE 100 so far

You may be disappointed if you were expecting consistency in the way FTSE 100 companies are reporting under the new Directors’ Remuneration Report Regulations (as The Large and Medium-sized Companies and Groups (Accounts and Reports)(Amendment) Regulations 2013  are more helpfully known).  Surely, with all those rules and the endless guidance, there can’t be that much … Continue Reading

Fair exchange is no robbery – the ABI’s Investor Exchange mechanism

The Association of British Insurers (ABI) has recently published its paper “Collective Engagement Investor Exchange”, giving details of how its Investor Exchange mechanism, one of the means of improving shareholder engagement suggested in its July 2013 report on Corporate Governance and Shareholder Engagement, will work in practice. Invitations to meetings set up between the ABI … Continue Reading

Switzerland’s 1:12 Initiative Failed but the Debate for Pay Equality Continues

On November 24, 2013, Swiss voters soundly voted down (65.3% to 34.7%), a proposal to limit the pay of companies’ highest paid managers to 12x that of their lowest paid rank-and-file workers, known as the “1:12 Initiative”. The 1:12 Initiative was raised by Switzerland’s Young Socialists, who succeeded in collecting 100,000 signatures to put the 1:12 … Continue Reading

Oracle’s Larry Ellison and Where is Say-on-Pay Headed in 2014?

On October 31, 2013, shareholders of Oracle Corp. voted “no” to CEO and founder Larry Ellison’s pay package worth $78.4 million (which is actually down 18 percent from the $96.2 million package he received a year earlier for which he also received a “no” vote by Oracle shareholders) (see Oracle Form 8-K filing).  Approximately 56.3 percent of … Continue Reading

Global Intolerance for Excessive Compensation—Countries Creatively Trying to Manage Executive Compensation

Executive compensation in the US is the highest in the world in both absolute terms and relative to median salary in the US (who can forget the widely publicized news report that J.C. Penney CEO Ron Johnson received a compensation package worth 1,795 times the average salary of a US department store worker?). Other countries, … Continue Reading