A challenging proxy season is ahead as noted in this comprehensive report by The Conference Board. The authors share findings from last year's proxy season that provide insights and expectations for what's to come. Some of the key takeaways for this year's proxy season include: A more difficult proxy season than previous years - largely due to increasing volume of...
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Bank Compensation and Benefits Study identifies concerns and solutions Today's competitive and ever-changing banking industry demands focus on attracting and retaining top performers as an essential tool for success. It's no surprise the 2022 TBA Bank Compensation and Benefits Survey identified attracting, motivating and retaining talent as the top three concerns for participants. In this article, we break down key...
SUBSCRIBE TO NFP COMPENSATION INSIGHTS » Pay Transparency Laws Pay transparency laws continue to gain momentum as more states are now requiring employers to disclose salary ranges. These laws have been enacted as part of the efforts to achieve greater pay equity and identify pay disparities in defense of employees. While it may seem that this will only benefit employees, ultimately,...
Feb 23, 2023 | 2:00 PM CT As you plan for the new year, it’s important you have a pulse on data and trends in order to make informed decisions about your strategy, especially in a world changing as fast as this one. Join the NFP compensation consulting team as we break down exactly what you need to know to...
SUBSCRIBE TO NFP COMPENSATION INSIGHTS » Annual Incentive Payouts and TSR - Is There a Link? It's the start of the new year and companies are preparing their salary budgets and planning for annual incentive bonuses. Traditionally, it's known that organizations will use TSR performance (Total Shareholder Return) as a metric for long-term incentive planning. But how does TSR come...
Keep your compensation programs competitive by participating in NFPCC's Midstream and Upstream Industry Compensation Surveys. Get access to the latest benchmarks in both corporate and technical roles, inclusive of actual total direct compensation and target total direct compensation. Learn more about the Midstream Industry Compensation Survey » Learn more about the Upstream Industry Compensation Survey » REGISTER TO PARTICIPATE
Proxy season is around the corner and there is much to consider in regard to executive compensation disclosures. The SEC has new rules around pay for performance and clawback provisions which companies will need to examine closely in order to craft effective disclosures. This timely article from Skadden shares guidance on pay for performance, say on pay, pay ratio, clawback...
Compensation Risk Assessments As we near closer to the 2023 proxy season, preparations are underway as public companies gather requirements for various compensation-related disclosures. Among them are the results of a compensation risk assessment. The SEC requires detailed disclosure only if the company believes there is significant risk. It has become common practice for organizations to simply state they conducted...
We have completed our annual midstream and upstream compensation surveys and recently released the results. Once again, this year's responses revealed interesting findings in these sectors. Below we share notable takeaways from each survey. Midstream Survey The median 2023 projected salary increase budget for all employees is 3.5%.The most commonly used financial and operational metrics for annual incentive plans are...
Executive Retention Strategies By now, we are all well aware of the high turnover rates in the employee population and the Great Resignation phenomenon. Companies have been implementing creative strategies for attraction and retention to deal with this ongoing challenge. But what about turnover at the executive level? Although not at the same alarming rates as employee resignations, executive turnover...
We are excited to announce our rebrand as NFP’s Compensation Consulting practice is complete! Our integration with NFP allows us to expand our capabilities and create new paths for collaboration that elevate value for our current and future clients. While things have changed, we’re still the same team of people, delivering the same exceptional expertise and service you’ve come to know....
The L-Blast is Now NFP Compensation Insights! The SEC's Final Ruling on Pay vs. Performance Last month, the SEC released final rules on the pay for performance disclosure requiring public companies to submit additional information regarding executive compensation and its relation to company performance. For most companies, the new disclosures will be required in their 2023 proxy statements. The new...
The L-Blast is Now NFP Compensation Insights! Four-Day Workweeks are Getting More Attention As companies continue to struggle with attraction and retention challenges, employers are exploring more creative options to entice workers. Remote work, flexible schedules, better pay and benefits are some common ways organizations have been coping with workplace challenges. But, recently we have seen more conversations around a...
It has been decades since Americans have experienced record high inflation. Macroeconomic conditions, monetary policy, and a long list of other factors have caused inflation to rise around 8.6% over the last 12 months, and the consensus is inflation will continue to trend higher. Inflation is projected to increase to about 9% by the end of summer followed by a...
Companies preparing compensation strategies for 2022 can expect similar conditions to what we have seen in 2021. The ever-changing environment along with sporadic regulatory requirements from COVID protocols are forcing companies to be more adaptable. Believing the US economy and workforce will retreat to their pre-pandemic form is unreasonable. Therefore, companies must continue to adapt, taking lessons learned from 2021....
Executive compensation in the eyes of shareholders and outside observers is a complex, intriguing subject matter that always has people talking. As for public company executives, with their compensation required to be disclosed, the discussion around how much the company leaders are being compensated always appears as a topic of interest. Looking closer at the details surrounding executive pay, in...
The corporate structure over the past 30 years has been predicated mainly around the regulations necessitated by actions taken by corporations that have ultimately resulted in negative consequences. A constant balancing act of an open-market economy vs. necessary regulation has seen corporations combat the forces of what they can and cannot do. Now, as we endure yet another macro-economic financial...
In times of crisis, companies are desperate to reduce expenses As the weeks go by, the effects of COVID-19 have entered nearly all aspects of life and business. The month of February marked the first death from the virus on American soil which soon began the series of events that led the country to shut down as a whole. As...
Dear All, It’s hard to believe May is just around the corner and proxy season will soon be coming to an end. It has been interesting, to say the least, to see the CEO pay ratio disclosures and the attention they’ve gotten from the media. This may be a potentially embarrassing math calculation employers have long hoped to escape -...
Two debates are currently underway: 1. Should college coaches be paid with lots of zeros and student athletes be paid zero? See the March 1 USA Today article attached. 2. The new 2017 Tax Act will provide a 21% excise tax on any not for profit (University) for paying over $1 million. In essence, should not for profits have an...
This article by Claudia Assis on Honeywell provides a perfect, real-time example for any of our energy clients worried about CEO Pay Ratio disclosure. With figures averaging in the 70s – 80s, the energy industry as a whole will pale in comparison to other sectors. Honeywell is 333:1.
Many of you are in the “proxy push” to get the proxy statement filed in the coming months. The amount of detail required, and requested, can make the exercise a challenge for all involved. The question is: Are you spending your time effectively on the right parts? A recent survey found the following sections of a proxy statement as the...
Dear All, We are well into the start of the new year and although 2018 has greeted us with some extremely cold temperatures that paralyzed our city for a couple of days, we at NFPCC have hit the ground running and are gearing up for proxy season. In this first L-Blast of 2018 we have some important articles to share...
We would like to share this article written by Dina Gerdeman featured on Harvard Business School's website entitled, "If the CEO’s High Salary Isn't Justified to Employees, Firm Performance May Suffer." Researcher Ethan Rouen discovers that rank-and-file employees understand the boss deserves a big salary, but only when the number is fully explained. In addition to providing a clearer explanation of...
As we all know, both the House of Representatives and Senate voted to pass the Tax Cuts and Jobs Act legislation and sent it to 1600 Pennsylvania Avenue for the President’s signature. While it will take more time for the country’s citizens and corporate world alike to truly understand the bill’s impacts, there are certain implications in the world of...
Dear All, We hope you had a wonderful Christmas in the company of family and friends. It is hard to believe 2017 is quickly coming to a close and the end of the year is upon us. We have had a great year filled with new challenges and growth and we are looking forward to a prosperous 2018. In this...
The deadline to disclose the CEO Pay Ratio in proxy statements is quickly approaching, contact NFPCC today for assistance in the development of the ratios of how to disclose within the proxy. In the event you have not initiated the CEO Pay Ratio discussion internally, or would like independent third party observations and recommendations, NFP Compensation Consulting is here to...
This is your last chance to participate in NFPCC’s Energy Pay Pulse Survey. It closes Friday, December 15th! At NFPCC, we’ve designed our participant-only 2018 Energy Pay Pulse Survey to concisely and powerfully assess market trends for companies in the energy industry. The survey will capture current compensation trends as they relate to: Salary increases Employee hiring/turnover Anticipated bonus payouts...
NFP Compensation Consulting was selected as one of the Fastest Growing Firms in 2017 in Consulting Magazine! Check out our editorial feature here, including the interview with our President, Chris Crawford, about the continued growth and success we expect for NFP Compensation Consulting' future. Consulting Magazine also features our two page ad spread here. We are very grateful for this honor and want...
Dear All, It’s hard to believe the holidays are upon us, but what an exciting time it is for our great city of Houston as the Astros compete for their first World Series title! We may be champions by the time this hits your inbox, but whether we win or not, we are proud of our team and this great accomplishment. Way...
Institutional Shareholder Services (ISS) launched a two-week consultation on potential updates to its benchmark voting policy for 2018. The comment period will allow all interested parties – including companies, investors, advisors, and others – to provide their perspective on 13 draft policies. If adopted, these policies would take effect for meetings on or after February 1, 2018. Comments will be...
ISS published its annual post-season report on compensation results and trends last month, and this article from Harvard Law School Forum on Corporate Governance and Financial Regulation summarizes their findings. Here are some main points: Say-on-pay support reached its highest levels. The severity of pay-for-performance misalignment correlates with ISS vote recommendations. Median S&P 500 CEO pay reached its highest point...
Today we are sharing this article from the Harvard Law School Forum on Corporate Governance and Financial Regulation with helpful information to our readers. Even though director compensation programs look quite similar from company to company, the primary difference between programs is the level of compensation, not the form of compensation. Director compensation levels are significantly more compressed than they have...
We found this great article written by Business Wire, and we wanted to share it with our readers: Activist Investor Challenges Executive Pay Accounting at T-Mobile July 31, 2017 - WASHINGTON - (BUSINESS WIRE) - Earlier today, the CtW Investment Group petitioned the SEC to require T-Mobile (NASDAQ:TMUS) to provide a clear and comprehensible description of the methods used to...
Keep your incentive programs competitive with the energy market by participating in NFPCC’s 2017 Energy Incentive Compensation Survey. Click on the link to find out who is eligible to participate, what data will be provided, how much it costs, important dates to be aware of, and what other companies have participated in this survey. To sign up or request more...
NFP Compensation Consulting performed a detailed study of compensation awarded to chief executives at North Texas' largest publicly traded companies, based on 2016 revenue. This article written by Karen Robinson-Jacobs discuss the main trends found in our study and features commentary from our company's President, Chris Crawford. We work with the Dallas Morning News to create this annual report on CEO...
On Tuesday (7/25), CRTRA partnered with NFP Compensation Consulting to package 7,992 meals through the Outreach Program to help feed hungry people. Check out their program and other local programs like it, and see what opportunities are available for you and/or your company to volunteer and give back to your community!
Chain Restaurant Total Rewards Association's 2017 Annual Conference Hilton Gaslamp 401 K St. San Diego, CA 92101 Session 1: Roundtable: What Reward Data is Important to You? July 26, 2017 3:00pm Speakers: Liz Mayo, Director, NFP Compensation Consulting and Susan Douglas, Senior Comp Consultant, Topgolf USA Of course, when asked, CRTRA members will always say CRTRA surveys provide the best...
Our survey team at NFPCC has designed an incentive compensation survey for the Oil & Gas industry to provide competitive market practices in both annual and long-term incentive compensation plan designs. Specifically, the survey will report on incentive plan eligibility, performance metrics, vehicle mix, vesting periods, vesting schedules, annual incentive targets, and long-term incentive targets. The deadline to participate is...
While CEO pay has been a hot topic for many years, it has come back into the spotlight after the House of Representatives recently voted to repeal the Dodd-Frank legislation. Critics are complaining that transparency is necessary to lower CEO pay, but we are sharing this Fortune article that shows the majority of CEOs really aren't overpaid. However, companies are...
NFP Compensation Consulting' President, Chris Crawford, was quoted in this recent article from the Houston Business Journal discussing why it "pays" to live in Houston. Written by Jack Witthaus, the article highlights various roles and expert rationale on why they either earn more or less than the national average. The article also includes some helpful graphics that we think you will...
Carefully drafted incentive compensation plans can improve executive loyalty. It's a good idea to make sure your executives are protected, and there are a lot of variables to consider in putting together incentive compensation plans. This article discusses options like cash or equity, appropriate triggers, and other "do's and don'ts" to consider with drafting this type of compensation.
We found and wanted to share this recent Forbes article rehashing an interesting discussion from five leading governance experts on the topic of effective governance strategies. While concluding that best practices are not “one size fits all”, the article highlights some key factors for boards to evaluate when determining how best to develop an effective governance program for their organizations.
There's a new revenue recognition standard that could affect compensation and bonus plans. These plans are made over many years, and the ways of measuring and the timing of recognition of revenue change. Determining compensation incentives that reward real growth will require serious reconsideration. Companies will need to reexamine definitions, calculations, and targets in incentive plans and other performance-based compensatory...
One of the biggest issues facing boards today is setting goals for incentive plans. How do companies find that balance between motivating executives, aligning with the company's strategic goals, and satisfying shareholders? This article by ClearBridge analyzed the goals for annual incentives & long-term incentives set by 100 S&P 500 companies to help answer this question.
We want to share this podcast interview with our readers. Ann Yerger, a fellow expert in our industry, shares about the evolution of corporate governance that she has seen over her 30-year career. Listen to the audio interview here.
Board independence is an increasing focal point for investors, proxy advisors and corporate issuers, especially now as companies go through their annual shareholder meetings. With that in mind, we thought this article from the Financial Times relevant for our community as it highlights a recent study on director independence and its impact on governance.
We believe this article by Harvard regarding cybersecurity for boards is worthwhile for our readers. When it comes to the board's role in risk oversight, it is imperative for directors to stay ahead of the curve. Since it can be difficult to identify upcoming risks, this article discusses prioritizing three specific areas based on emerging regulatory developments and impending cyber...
We found this article and thought our readers might be interested in why executive pay gets a bad rap. The media typically looks at a total compensation number and reports it without the appropriate context, so it’s easy to understand why executive pay is often misrepresented; and politics and optics mostly amplify this misunderstanding. However, when people take the time to see...
This article is about executive compensation being highly controversial with most Americans feeling that CEO compensation among large publicly traded corporations is a problem. This article goes in depth to discuss how executive compensation practices have changed in the recent years, metrics to link management pay to company performance as well as many other comparisons.