L-Blast | February 2019
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 Midstream and Upstream compensation surveys which will be launching April 1st.
We have some interesting articles to share with you this month and hope they’re helpful in planning your compensation strategies. The first piece is an article on tying sustainability to executive compensation. We are seeing an upward trend in companies attempting to link environmental, social and governance (ESG) factors to executive pay incentives as boards face more pressure from shareholders. The article explains a good approach to reach sustainability goals and please investors while providing notable returns.
The second article shares the importance of setting executive compensation levels strategically and accordingly. Many companies still make the mistake of grouping all executives into the same pay scale, running the risk of losing the key players that fuel growth, or overpaying less valuable team members.
Lastly, we are happy to announce NFPCC has been recognized as one of Houston’s Best and Brightest Companies to Work for. We hope to continue providing an outstanding workplace for our team, and in turn provide you – our clients – with great service. We appreciate each and every one of you and as always, let us know if there is a particular subject you’d like to learn more about.
The NFPCC Team
2019 Midstream & Upstream Compensation Surveys Launch April 1st
Keep your compensation programs competitive by participating in NFPCC’s Midstream and Upstream Industry Compensation surveys and find out what it takes to attract, motivate and retain your teams. The surveys will provide current compensation trends as they relate to pay policies and practices, annual incentive measures and metrics, long-term incentive eligibility, vehicles and distributions, retirement, severance and change-in-control data.
Surveys are scheduled to launch April 1st and final survey results will be available only to participating organizations. You don’t want to miss out!
Click the buttons to learn more about the surveys or contact Josh Whittaker at 281.378.1368
How to Tie Executive Compensation to Sustainability
The challenge of running a sustainable enterprise has taken center stage among shareholders. Last year, for example, Russell 3000 companies received 144 shareholder proposals requesting action on social and environmental issues. Meanwhile, in a survey of 89 institutional investors by Callan, 43% of respondents said they incorporate sustainability factors into their investment decisions — up 21 percentage points from 2013.
Executive Compensation Mistakes: Stop Treating Everyone Equally
In your business, certain functions are more important than others. And fair or not, some people on your executive team are more important than others. Their compensation should reflect that. That may sound like common sense, but based on our research, we find that far too many companies do just the opposite, averaging out executive compensation across their entire team in search of “fairness.”
NFPCC Named One of Houston’s 2019 Best and Brightest Companies to Work For
NFPCC is excited to receive the Best and Brightest Companies to Work For award for the second time!
This competition identifies and honors companies that deliver exceptional human resource practices and an impressive commitment to their employees. Organizations are assessed based on categories such as communication, work-life balance, employee education, diversity, recognition, retention and more.
Out of 350 nominations, 68 companies received this distinction. See the complete list of winners here.
Contact Us for Help with Your Proxy Statement and CD&A
The deadline to disclose the CEO Pay Ratio in proxy statements is quickly approaching and NFPCC is here to help. Our internal experts have evaluated the rule, and understand the various alternatives available. Additionally, we are here to assist in developing your CD&A disclosures and can advise on what areas you should concentrate on when putting together your statement.
GET THE MOST OUT OF YOUR 2019 PROXY STATEMENT & SHAREHOLDER OUTREACH ENGAGEMENTS.
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