L-Blast | September 2018
The fall season is upon us and before we know it the holidays will be here! We at NFPCC are excited to see what 2019 will hold as we prepare for the end of the year.
We have some great reads to share with you all in this month’s L-Blast edition. The first piece is an NFPCC original article on long-term incentives in which we share our recommendations on the timing of these awards to establish a more effective compensation strategy that fosters shareholder support during Say on Pay voting.
The second piece from our partners at NFP is on the Excise Tax and the effects of the Tax Cuts and Jobs Act on Executive Compensation. We think this piece is very informative as it explains what the Excise Tax is, what exceptions there are, and ways to develop a compensation structure that avoid negative tax consequences.
The next article is from our friends at WorldatWork. I have worked with WaW for almost 30 years now – as a teacher, author and curriculum designer – so, this is a nice piece on a much more personal level. It was my pleasure to work with the editors of WorldatWork’s Workspan magazine and share a little about me and my passions. It’s an honor to be featured in their publication and hope you enjoy the read!
Lastly, we are pleased to share some of the highlights from our Midstream and Upstream survey results. We hope these insights will be helpful to you in developing competitive compensation programs. As always, let us know if there is a particular subject you’d like to learn more about.
The NFPCC Team
Timing Long-Term Incentives
We are now in the 8th year of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”). Among other things, the implementation of Dodd-Frank meant the majority of public issuers had to learn to navigate the waters of shareholder advisory votes on executive compensation, better known as “Say on Pay”.
Workspan Feature: Renaissance Man with an Appetite for Competition
Our CEO was featured in the September issue of WorldatWork’s Workspan magazine. In case you missed it, we would like to share the piece with you. In this Q&A style feature we get up close and personal as he shares some of his favorite hobbies and interests and offers a peek into his family life.
2018 Upstream & Midstream Survey Results Highlights
- Actual 2018 salary increases were lower than projected for larger midstream companies. Conversely, actual 2018 salary increases were consistently higher than projected for upstream companies.
- The utilization of a formulaic approach to determine annual bonus awards is much more prevalent compared to midstream companies who rely heavily upon the use of discretionary metrics.
- More than half (52%) of upstream companies reported their entire employee population is eligible to receive equity, while only 13% of midstream companies employ this practice.
- Qualifying retirement age occurs 5 – 8 years earlier at midstream companies compared to upstream companies; however, upstream companies require fewer years of service in their retirement plans compared to midstream companies.
QUESTIONS ABOUT THE 2018 UPSTREAM & MIDSTREAM SURVEYS?
INTERESTED IN PARTICIPATING NEXT YEAR?
To download a copy of the L-Blast or see a PDF version click the link below:
Download September L-Blast