Latest Insights & Industry Trends

SUBSCRIBE TO NFP COMPENSATION INSIGHTS » The Importance of Effective Board & Committee Meetings Running effective board meetings plays an important role in good governance practices. NFPCC has spent a lot of time in boardrooms over the years and...

NFPCC attends over 100 board and committee meetings annually. Each meeting is unique; however, there is a key factor that makes a meeting and its discussions fruitful: preparation. Benjamin Franklin once said, “failing to prepare is preparing to fail.” NFPCC agrees...

SUBSCRIBE TO NFP COMPENSATION INSIGHTS » The Dynamic Process of Setting Executive Compensation Executive pay continues to be a highly controversial topic as media reports tend to focus on egregious compensation packages to seemingly undeserving executives....

While not all pay is justifiable, executive compensation continues to be unnecessarily painted in a severely negative light. In the world of governance, it is a common topic which bands together the masses against the few, falsely highlighting inequity and greed. While...

SUBSCRIBE TO NFP COMPENSATION INSIGHTS » Our Role in Risk Management The role of compensation consultants is vital when it comes to risk management. Companies should be able to rely on us for peace of mind, knowing we have equipped them and their Boards...

In today’s dynamic business landscape, risk management is a paramount concern for organizations striving for sustainable success. Among the myriad aspects of business operations that require careful oversight, compensation management stands out as a crucial area that can...

Sustainability goals are now widely considered on par with more traditional KPIs and are slowly becoming standardized as external pressures continue to push corporations to tie non-financial measures to executive pay; however, this hasn’t always been the case, clearly. So...

What the Data Reveals We are well into the middle of the year and most companies have made it through the daunting period of performance reviews and annual raises. So how have increases played out so far?  Mercer’s recent survey revealed that 2023 annual merit...

SUBSCRIBE TO NFP COMPENSATION INSIGHTS » Staying Ahead of Rising Compensation Challenges Boards and management teams are facing an increasingly demanding environment when it comes to compensation-related issues. Inflation, a tight labor market...

Inflation, threats of recession, and high employee turnover are just a few of the issues Boards and management teams must contend with in 2023. These challenges are coupled with increased regulations, continued shareholder institution noise, and the SEC continuing to impose...

SUBSCRIBE TO NFP COMPENSATION INSIGHTS » The Evolving Role of the Compensation Committee The role of the compensation committee continues to evolve and grow in complexity. Members can now expect to have more responsibilities as their roles expand into...

It’s no secret that the role of the Compensation Committee has been evolving for some time now. It is safe, however, to say that sitting on a Compensation Committee (or board of directors for that matter) is not what it used to be. What was merely a fiduciary role to...

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...

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...

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....

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...

Incentive compensation holds an important yet unique place within a company’s pay program initiatives. Both long and short-term incentive plans should be designed to balance attracting and retaining top-level talent in conjunction with motivating behaviors to achieve a...

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...

Pay vs. Performance? “Okay, it’s happening, everyone stay calm.” – Michael Scott Last month, after nearly a decade, the Securities and Exchange Commission (SEC) adopted final Pay vs. Performance rules (“Final Rules”). These Final Rules, while more complex than...

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...

Effective compensation programs have a strong circular relationship between measurable goals, tangible performance, and actual payouts. This is true whether the goal or goals are short-term or long-term in nature. But what happens when the lines between goals and...

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...

Next year's proxy season is around the corner and it's a good idea to start preparing, taking important considerations into account regarding executive compensation. In this article, Winston & Strawn share key matters to consider as public companies begin planning,...

Reassessing Compensation Peer Groups Peer group selection has always played a key role in the executive compensation planning process. While peer group composition may have been somewhat static in previous years, companies are now at a point in which reassessment is...

  Impacts of a global pandemic, volatility in the markets, bankruptcies and consolidation through M&A activity has created a new business landscape… one no industry has completed escaped. The one area this impacts meaningfully is peer selection for compensation...

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...

Compensation committees continue to evolve, especially after last year's events. In this great article by NACD, new light is shed on the ever-changing role of the compensation committee in regards to human capital and ESG issues. For all of us either on these committees or...

NACD’s Advisory Councils recently met with Fortune 500 committee chairs in the audit, compensation, governance, risk oversight, and lead director groups to reflect on the past year’s events and the new shifts brought on by a new presidential administration. Through the...

We have recently completed and released the results for our 2020 Midstream and Upstream Industry Compensation Surveys. Once again, this year's surveys revealed interesting findings in these sectors. Below are some of the key takeaways from each survey. Midstream Survey »...

Dear All, We hope you and your loved ones continue to stay safe and in good spirits as we get through this challenging time. It’s hard to believe 2020 is halfway over, and what a year it has been. Hopefully the second half of the year gets better and we can finally put...

Dear All, We hope you and your loved ones continue to stay safe and in good spirits as we get through this unprecedented time. Although it will be a challenge, it’s definitely uplifting to see restrictions ease as our country begins to take the first steps in the...

Dear All, We hope you and your loved ones continue to stay safe and in good spirits as we get through this crisis. There is a lot of uncertainty and fear in what we are experiencing, but let me reassure you we are here for you, our clients, partners, and colleagues, to...

Dear All, We are facing unprecedented times and it is my sincere hope that you and your families are safe and have everything you need as we all continue to comply with orders from health and government officials. These are those times in our lives that we will always...

Dear All, We are well into the start of the year with spring around the corner and proxy season upon us. Here at NFPCC we have been busy helping our public company clients with their proxies, shareholder outreach and CD&A disclosures. Effective communication to...

Dear All, Happy New Year, may this be our best year yet! We hope everyone had a joyful holiday season in the company of family and friends. As many of you may know, I had a total knee replacement late December. I want to take this opportunity to thank all of you for your...

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...

Dear All, As 2019 comes to an end, we look back on this year’s accomplishments and the challenges we faced. It was a year that brought forth strength and growth as a team. We look forward to the new year with greater confidence, and purpose to continue to be better and...

Dear All, The holidays are upon us and the end of the year is quickly approaching. It has been an interesting year for us here at NFPCC but in this month of Thanksgiving, we reflect on all our blessings and are thankful we can still say we had a successful year, despite...

Dear All, It’s hard to believe the holidays are around the corner, but what an exciting time for our great city of Houston once again as the Astros compete for their second World Series title! We had a rough start but are now in the lead, just one win away from the...

To All Our Energy Community, There has never been a time where the energy industry has been in such a state of flux… especially with respect to executive and board compensation. Compensation has, for all intents and purposes, become a “battleground” of sorts. Still,...

SailingStone Capital Partners recently shared a memo» outlining key changes to their proxy voting guidelines relating to governance and incentive compensation practices. Below we share our thoughts on each of the changes they will implement in the 2020 proxy...

Recently, some of the team at NFPCC was afforded a great opportunity to participate in TPH’s Energy Roundtable discussion with multiple constituents involved in the corporate governance landscape within the industry. TPH (Tudor, Pickering, Holt & Co.) is an...

Dear All, It’s nice to feel some slightly cooler temperatures as we enter the fall season and start drawing closer to the end of 2019! It’s a good time to refocus our energies to tackle the last few months of the year and finish strong. We have some great reads for...

Dear All, Just like that, the summer break is over and the kids are back in school, excited to see what this new school year brings. We at NFPCC are also looking forward to the opportunities the busy fall season will bring as we prepare to face new challenges. We hope you...

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...

Dear All, Spring is around the corner and proxy season is in full swing! Here at NFPCC we are off to a great start this year, staying busy helping our public clients with proxy and CD&A disclosures. Our survey specialists have also been hard at work preparing for our...

While many businesses have a solid business plan in place, they often neglect implementing a compensation strategy. Without proper planning, it’s easy to offer too much or too little money to compete for talent and with the labor market at 3.9% unemployment (December...

Dear All, It’s hard to believe 2018 is quickly coming to an end. We wish you all a very Merry Christmas and a happy and prosperous 2019! We at NFPCC are very grateful for another great year and for all of you. We look forward to the new challenges and opportunities the new...

Everyone talks about it, but no one seems to know how to perfectly achieve it…pay-for-performance. We see it everywhere, on the sports fields and in the boardroom, everyone wants to correlate pay with performance. This desire has led to the continual search for the newest and...

ISS ANNOUNCES POLICY UPDATES FOR 2019 PROXY SEASON For those unaware, Institutional Shareholder Services (“ISS”) announced updates to its 2019 benchmark proxy voting guidelines on November 19, 2018. This is the last step of their annual process wherein they review policies,...