Say on Pay Small Company Exemption Expires Jan. 21, 2013, & Pay ‘Em or Lose ‘Em Ain’t a Myth | January 2013
Happy 2013 to all! Welcome back, and we here at NFPCC hope your holidays were magnificent.
Unfortunately, executive pay does not take a "holiday." Rather, it sure seems it is constantly changing with new articles, thoughts, and regulations continually coming to the forefront. As such, this month's L-Blast has two articles of interest:
– SEC's new rules for Say on Pay as required by Dodd Frank; and
– A great article by NFPCC’s COO and Executive Director, Chris Crawford, which takes on an article they recently published in the New York Times titled, “Pay ‘Em or Lose ‘Em Ain’t a Myth.”
Both are a great way to start off our new year — a year that promises to see executive pay continue to stay in the spotlight.
Enjoy the read, and again… Here's to a great 2013.
by Institutional Shareholder Services
Just as a reminder for public companies under the 75mm market cap, "The Commission also adopted a temporary exemption for smaller reporting companies (public float of less than $75 million). These smaller companies are not required to conduct say-on-pay and frequency votes until annual meetings occurring on or after January 21, 2013."
Pay 'Em or Lose 'Em Ain't a Myth
by Chris Crawford of NFP Compensation Consulting
A recent article in the New York Times, “CEOs and the Pay-‘Em-or-Lose-‘Em Myth” draws two interesting conclusions off the research conducted by two professors of the University of Delaware’s Weinberg Center for Corporate Governance: 1) CEOs can’t readily transfer their skills from one company to another, and subsequently 2) CEOs don’t need to be well compensated to keep up with supposed comparators or competitors, as those comparisons only artificially ratchet pay up. While it makes for an interesting read, anyone in the compensation trenches — board members, recruiters, Human Resources executives, compensation advisors, etc. — dealing with the attraction and retention of executive-level talent, including CEOs, knows this simply isn’t true. This article includes a few counter points.