Effective Executive Compensation Strategies: Treading Through the Difficult Challenges

2021-05-31T02:51:04-04:00

The executive compensation landscape has continuously evolved over the years. Companies have been confronted with shifting regulatory standards, competitive global markets, and economic challenges and demands. These developments require businesses to re-evaluate their existing executive compensation strategies and policies and turn them into a more effective and advanced program to mitigate risk exposure and legal liabilities.

CEO Pay Ratio Rule: What You Need to Know

2021-05-18T03:00:58-04:00

As the 2020 proxy season comes to a close, we reflect on the third year that CEO pay ratio disclosure under Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 402(u) of Regulation S-K has been required annual disclosure for public companies. Compliance should be easier for companies that have already made pay ratio disclosures in 2018, 2019 and 2020. However, companies that have been using the same median employee will need to dust off employee census data and identify a new median employee next year whose compensation will be the basis of comparison. The impact of COVID-19 on the corporate workforce may also necessitate identifying a new median employee for companies that have initiated a reduction in force. 

Trends and Developments on Executive Compensation: A Comprehensive Guide to Avoid Potential Threats

2021-07-16T03:32:58-04:00

Various issues have continuously affected the executive compensation landscape and impacts of COVID-19 has also added to these concerns. Because some businesses were not well-prepared to withstand the pandemic’s fallouts, the immediate response left for them to alleviate cash flow difficulties is to implement several cost-cutting measures. However, they must also become aware of the different gray areas concerning these steps. Thus, being up to date with the current and emerging legal trends is essential.

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