Executive compensation is a complex and multifaceted subject that plays a crucial role in the functioning of banks. In a vibrant financial sector, the compensation of executives at banks is of significant interest and scrutiny. This comprehensive explanation aims to delve into the intricacies of executive compensation in the banking industry, providing insights into the factors that influence compensation packages,...
All Posts By Tyler Brown
It’s that time of year again as calendar year organizations begin to finalize their respective annual incentive/bonus payouts. Within this context, many board members and directors, in their totality, are wrestling with investor perspectives and pre-determined performance metrics. This convergence of thought processes has been a continued hot-button topic covering the previous five years. Within this article, NFPCC analyzed recent...
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...
In times of economic uncertainty and heightened retention concerns across all employers, utilizing capital to its highest utility is of the utmost importance. NFPCC has been diligently focused on the strategic use of compensation within client organizations. Specifically, NFPCC has consulted with clients to understand philosophical and psychological differences amongst their respective workforces. Within the U.S. workforce today, four different...
The effect of the 2020/2021 economy has wrecked recruiting and budget plans, causing a shifting of power. Specifically, the transition and pausing of business in the early months of the pandemic resulting in a precipitous decline across all sectors. The economy has rebounded, yet many businesses have not been able to find or retain the talent to fill their crucial...
For a long time and even more recently in a pandemic/worldwide health crisis, the compensation of executives, specifically in cyclical and commodity-based businesses, has always been scrutinized. Our firm sees articles like Forbes’ “CEO Compensation is Out of Control” and hears comments from top professionals like Warren Buffet saying, “I do not like what is going on with executive compensation."...
Bank executives have some of the most highly transferrable, in-demand skill sets, leaving boards to decipher the best and most efficient ways to stay competitive while aligning the future of their organizations. They must balance three pillars of a well-rounded talent strategy: attracting new executives, retaining mission-critical employees and aligning interests. These pillars can be boiled down to tying executives...
Introduction The pandemic has significantly impacted the real estate sector. With a surge in the number of employees who work from home, the demand for office space has softened. At the same time, growth in e-commerce has exploded, resulting in further disruption of traditional retail business. As the post-COVID effects of the pandemic continue to plague the real estate market,...
Introduction Over the last 10 months, we have watched many companies across the US begin to shift from a traditional work landscape to a “work from home” environment. The cause? An on-going global pandemic. What appears to be one of the greatest human capital management endeavors in a generation, recent events have prompted remote work opportunities faster than any other...
BUILDING SUCCESS THROUGH TALENT ACQUISITION AND PRESERVATION The importance of employee attraction and retention on overall business success is an often-debated issue. Although two very divergent schools of thought exist — either employees as assets or employees as expenses — everyone agrees on one thing: Employees are necessary to operate a business and employees want to feel valued. It has...
In all businesses, the single largest asset and investment are the people. As any company leader knows, the biggest cost of doing business is most oftentimes the cost of labor; inclusive of wages, benefits, payroll, or other related taxes. This investment of organizational funds has been a rising hot button topic amongst lawmakers, politicians, and organizational employees. This general traction...
As many of us settle into what has become a new normal, businesses are feeling the wave of negative effects the Coronavirus (COVID-19) has brought to the American economy and are desperately trying to navigate the challenges brought forth by this crisis. For many it has meant salary cuts, furloughed employees and altered every-day business operations. But how should boards...
In a previous article written by NFPCC in 2018, the growing concern of gender pay gaps and how they impact attraction and retention issues in corporate America was addressed. Through this process, it was discovered that the issue of the pay equity gap really was not as serious as previously thought – at least to the extent as portrayed in...
Every January, NFPCC purposes to focus on major events that will shape the compensation landscape in the new year. In 2020, the biggest factor that will impact the future of compensation packages and organizational success/profitability, that is a certainty, is the 2020 presidential election this November. As NFPCC has attended many board meetings over the fourth quarter of 2019 and...
MAJOR COMPONENTS (OR "BUCKETS") OF EXECUTIVE COMPENSATION ARE FUNDAMENTALLY SIMILAR IN PUBLICLY TRADED COMPANIES ACROSS ALL INDUSTRIES. We at NFPCC understand that although similar in function, there are certainly unique characteristics in every company’s respective compensation philosophy and pay programs. It is, however, worth mentioning that no matter how unique a company may be (i.e. industry), NFPCC has found more...
NFPCC REPORTS KEY FINDINGS IN ISS 2019 SURVEY On Sept. 11, 2019, Institutional Shareholder Services Inc. (ISS) announced the results of its 2019 Global Policy Survey based on respondents including investors, public company executives and company advisors. ISS will use these results to inform its policies for shareholder meetings occurring on or after February 1, 2020. ISS expects to release...
If you do an internet search for “CEO pay”, you get 807 million hits, and most of those are “hits” on CEO pay. Some are warranted, and many are not. Nowhere is this truer than CEO pay in the energy business in 2019. Many investors rotated out of public energy investments over the past several years, in spite of...
Companies often ask us, “What are we not doing that we should think about as it relates to executive compensation?” We recognize the executive compensation environment is continually heating up with pressure from just about every angle, and as a result, the answers to this question periodically change. As such, we have compiled a few thoughts applicable for the current...
In this article written for WorldatWork's Workspan publication, we outline the important aspects that should be taken into consideration to ensure an IPO is positioned for success.
In July 2010 Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act; primarily, as a response to the financial crisis of 2007-2009. A key provision under Dodd-Frank requires public company directors to determine if the company’s compensation and governance programs incentivize or exacerbate company risk. Additionally, this rule requires companies to provide commentary within their proxy statement or...
NFPCC was recently invited to participate in Tudor Pickering’s 2018 Hotter N’ Hell Conference. Dan Pickering quizzed NFPCC’s Chris Crawford on recent executive compensation trends in the energy sector. Here are just a few highlights from that “fireside chat”. Q: It is a hot topic among shareholders, but does executive pay really matter to stock performance... isn’t it a rounding...
DOWNLOAD THE WHITEPAPER Updated August 2020 With the passage of the 2017 Tax Act, more scrutiny continues to be applied to not-for-profit organization compensation. This follows recent actions from various state and federal agencies upping the ante on not-for-profit compensation. As such, we believe there will be more pressure for not-for-profit organizations to prove pay for performance. Not-for-profits have generally...
It’s that time of year again as we enter the final quarter of a compensation cycle and the beginning of a new football season, with renewed hopes that this is your team’s year. With this entry into salary planning time for the general employee population, HR departments are currently in the throes of the HR “Super Bowl” of evaluating, entering,...
“The interval between the decay of the old and the formation and establishment of the new constitutes a period of transition which must always necessarily be one of uncertainty, confusion, error, and wild and fierce fanaticism.”—John C. Calhoun CLAWBACKS—IS TOMORROW Dodd-Frank DAY, our D-Day? After speaking with the SEC, NFPCC inferred that tomorrow, Wednesday, the SEC will propose the clawback...