Executive Compensation in the 2020 Landscape: Key Considerations You Need to Know
Live Webcast Date:
Wednesday, January 22, 2020 from 3:00 pm to 5:00 pm (ET)
Executive Compensation in the 2020 Landscape CLE
Join us for this Knowledge Group Executive Compensation in the 2020 Landscape CLE Webinar. As the executive compensation landscape continues to evolve, the best practices that companies should follow also continue to change. Comprehensive knowledge of the executive compensation trends that occurred during the 2019 proxy season will be helpful in navigating the 2020 compliance landscape.
In this LIVE Webcast, a seasoned panel of thought leaders and professionals brought together by The Knowledge Group will provide the audience with an in-depth analysis of the recent developments and significant issues concerning executive compensation. Speakers will also offer the key considerations companies should take to ensure compliance in 2020.
Key topics include:
- The 2019 Proxy Season: New and Emerging Executive Compensation Trends
- Recent Developments and Issues
- Key Considerations for 2020 Compliance
- Best Compliance Practices
- Regulatory Outlook
Agenda
SEGMENT 1:
Rachel J. Markun, Partner
Hawkins Parnell & Young LLP
- Legal Developments on Use of Arbitration Provisions for Executive Compensation
- When the IRS Voluntary Compliance Program Can Provide Relief for Code Section 409A Issues
- Using ERISA Case Law Principles to Allow Deference to Employer Interpretation of Executive Compensation Agreements.
- State Law Standard for Addressing Board of Director Conflicts in Adoption of Executive Compensation Agreements
SEGMENT 2:
Jim Heim, Lead Consultant
Meridian Compensation Partners, LLC
- Business Roundtable (Lead Companies for Benefit of All Stakeholders)
- Council of Institutional Investors (Accountability to Everyone Means Accountability to No One)
- Big Three (BlackRock, Vanguard, State Street Global Advisors)
- Proxy Advisors
- CalPERS
- YOUR Investors!
SEGMENT 3:
Lauren Peak, Principal
Compensation Advisory Partners
- ESG metrics – are they gaining traction?
- ISS excessive director pay – what you need to know
- Assessing annual and long-term performance – when and what to make adjustments?
- High-level reminders for proxy season - Hedging policy disclosure, disclosure of ESG practices, Clear disclosure and use proxy to tell story, highlight any shareholder outreach.
SEGMENT 4:
Stephen O'Byrne, President
Shareholder Value Advisors Inc.
- It’s important to measure and benchmark pay for performance.
- Alignment of CEO pay and performance is surprisingly low: relative TSR explains only 10% of the variation in relative realizable pay for S&P 1500 CEOs.
- About 20% of companies do a good of aligning pay and performance and controlling cost.
- Companies should benchmark pay leverage, pay alignment and the pay premium at industry average performance, not target pay levels without controlling for performance.
- There are three pay policies that undermine the alignment of relative pay and relative performance.
- Competitive pay policy (i.e., 50th percentile pay regardless of past performance)
- Paying for industry performance
- Weak mechanisms to link cumulative pay and performance
- There is a simple pay plan with annual grants of performance shares that provides a perfect correlation of relative pay and relative performance.
- Top management pay has a statistically significant effect on future stock returns:
- Relative pay risk has a positive and statistically significant effect on future stock returns.
- The pay premium at industry average performance has a negative and statistically significant effect on future stock returns.
Who Should Attend
- Employee Benefits & Compensation Lawyers and Consultants
- Human Resource Executives and Directors
- Top Level Executives
- Members of Board Compensation Committee
- Executive Compensation and Benefits Managers
Executive Compensation in the 2020 Landscape CLE
SEGMENT 1:
Rachel J. Markun, Partner
Hawkins Parnell & Young LLP
- Legal Developments on Use of Arbitration Provisions for Executive Compensation
- When the IRS Voluntary Compliance Program Can Provide Relief for Code Section 409A Issues
- Using ERISA Case Law Principles to Allow Deference to Employer Interpretation of Executive Compensation Agreements.
- State Law Standard for Addressing Board of Director Conflicts in Adoption of Executive Compensation Agreements
SEGMENT 2:
Jim Heim, Lead Consultant
Meridian Compensation Partners, LLC
- Business Roundtable (Lead Companies for Benefit of All Stakeholders)
- Council of Institutional Investors (Accountability to Everyone Means Accountability to No One)
- Big Three (BlackRock, Vanguard, State Street Global Advisors)
- Proxy Advisors
- CalPERS
- YOUR Investors!
SEGMENT 3:
Lauren Peak, Principal
Compensation Advisory Partners
- ESG metrics – are they gaining traction?
- ISS excessive director pay – what you need to know
- Assessing annual and long-term performance – when and what to make adjustments?
- High-level reminders for proxy season - Hedging policy disclosure, disclosure of ESG practices, Clear disclosure and use proxy to tell story, highlight any shareholder outreach.
SEGMENT 4:
Stephen O'Byrne, President
Shareholder Value Advisors Inc.
- It’s important to measure and benchmark pay for performance.
- Alignment of CEO pay and performance is surprisingly low: relative TSR explains only 10% of the variation in relative realizable pay for S&P 1500 CEOs.
- About 20% of companies do a good of aligning pay and performance and controlling cost.
- Companies should benchmark pay leverage, pay alignment and the pay premium at industry average performance, not target pay levels without controlling for performance.
- There are three pay policies that undermine the alignment of relative pay and relative performance.
- Competitive pay policy (i.e., 50th percentile pay regardless of past performance)
- Paying for industry performance
- Weak mechanisms to link cumulative pay and performance
- There is a simple pay plan with annual grants of performance shares that provides a perfect correlation of relative pay and relative performance.
- Top management pay has a statistically significant effect on future stock returns:
- Relative pay risk has a positive and statistically significant effect on future stock returns.
- The pay premium at industry average performance has a negative and statistically significant effect on future stock returns.
Executive Compensation in the 2020 Landscape CLE
Stephen O'ByrnePresidentShareholder Value Advisors Inc.
Stephen F. O’Byrne is President and co-founder of Shareholder Value Advisors Inc., a consulting firm that helps companies increase shareholder value through better performance measurement, incentive compensation and valuation analysis. His work on measuring the strength and cost-efficiency of top management incentives has been published in the Harvard Business Review, the Journal of Investing, Conference Board Director Notes, the Journal of Applied Corporate Finance and the WorldatWork Journal. He is the co-author, with Professor David Young of INSEAD, of EVA and Value-Based Management. He was previously head of the compensation consulting practice at Stern Stewart & Co. and a Principal in the executive compensation practice at Towers Perrin.
Jim HeimLead ConsultantMeridian Compensation Partners, LLC
Mr. Heim has been a trusted advisor to Boards and their senior management teams on all aspects of executive compensation and director compensation issues since 2004. He leads engagements for clients ranging from Fortune 500 firms to pre-IPO start-ups across multiple industries, including technology, biotech, aerospace & defense and industrial manufacturing. Specific areas of focus include pay governance, incentive plan design, pay-for-performance alignment, compensation benchmarking, proxy analysis and special compensation programs for IPO and M&A transactions.
Prior to transitioning to the consulting field, Mr. Heim worked in the corporate human resources departments of EMC Corporation, The Gillette Company and One Beacon Insurance. He regularly writes and presents on executive compensation topics for organizations such as the NACD, American College of Corporate Directors, and WorldatWork, and is also a former faculty member of WorldatWork, serving as course instructor for “Principles of Executive Rewards”.
Lauren PeekPrincipalCompensation Advisory Partners
Lauren Peek is a Principal at Compensation Advisory Partners LLC (CAP). She has over 15 years of experience advising on executive compensation strategy development, evaluating the pay and performance relationship, annual and long-term incentive plan design and corporate governance issues. Lauren advises Compensation Committees and senior management for both public and privately-held organizations with significant experience in the pharmaceutical, manufacturing and consumer products industries.
Rachel J. MarkunPartnerHawkins Parnell & Young LLP
Rachel Markun advises clients regarding the corporate, tax and fiduciary issues relating to ESOPs and employee benefit plans. She has represented plan fiduciaries, employers and financial institutions in connection with legislative and regulatory initiatives relating to the Internal Revenue Code, ERISA, the federal securities laws, and the California tax laws. She has extensive tax expertise relating to tax-exempt entities including matters involving unrelated business tax issues and all aspects of retirement plan qualification issues. She represents retirement plan corporate sponsors in a variety of matters, including Internal Revenue Service audits and U.S. Department of Labor investigations.
Executive Compensation in the 2020 Landscape CLE
Course Level:
Intermediate
Advance Preparation:
Print and review course materials
Method Of Presentation:
Live Webcast
Prerequisite:
General knowledge of executive compensation laws and regulations
Course Code:
148819
NY Category of CLE Credit:
Area of Professional Practice
Total Credits:
2.0 CLE
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About the Knowledge Group
The Knowledge Group has been a leading global provider of Continuing Education (CLE, CPE) for over 13 Years. We produce over 450 LIVE webcasts annually and have a catalog of over 4,000 on-demand courses.
Speaker Firms
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Faculty
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Stephen O'Byrne
President
Shareholder Value Advisors Inc.
President
Shareholder Value Advisors Inc.
Jim Heim
Lead Consultant
Meridian Compensation Partners, LLC
Lead Consultant
Meridian Compensation Partners, LLC
Lauren Peek
Principal
Compensation Advisory Partners
Principal
Compensation Advisory Partners
Rachel J. Markun
Partner
Hawkins Parnell & Young LLP
Partner
Hawkins Parnell & Young LLP
About the Knowledge Group
The Knowledge Group has been a leading global provider of Continuing Education (CLE, CPE) for over 13 Years. We produce over 450 LIVE webcasts annually and have a catalog of over 4,000 on-demand courses.
Meridian Compensation Partners has a singular focus: to provide the most effective solutions and independent advice in executive compensation and corporate governance consulting. With over 70 associates in ten offices in the US and Canada, Meridian provides top management, boards and compensation committees at over 600 public and private corporations with core services that include board level advisory services, compensation program design, research and competitive market intelligence on executive pay and governance matters.
Website: https://www.meridiancp.com/
CAP is a leading independent consulting firm specializing in executive and director compensation and related corporate governance matters. Our consultants have served as independent adviser to Boards and senior management at many leading companies in the areas of compensation strategy, program design and in promoting sound corporate governance principles.
Website: https://www.capartners.com/
Hawkins Parnell & Young is a national defense litigation firm that has represented many of the largest and most well-known companies in high-risk litigation and business disputes. The 250-strong litigation team works with clients to develop winning defense strategies and, if necessary, try cases to verdict in all 50 states. As national leaders in their fields of expertise, their ESOP, Employee Benefits, M&A, Tax & ERISA group brings extraordinary depth in perspective when advising clients in connection with retirement plans, equity incentives, executive compensation, shareholder issues, fiduciaries, mergers and acquisitions, and employment and benefits litigation throughout the country.
Website: https://www.hpylaw.com/
Stephen F. O’Byrne is President and co-founder of Shareholder Value Advisors Inc., a consulting firm that helps companies increase shareholder value through better performance measurement, incentive compensation and valuation analysis. His work on measuring the strength and cost-efficiency of top management incentives has been published in the Harvard Business Review, the Journal of Investing, Conference Board Director Notes, the Journal of Applied Corporate Finance and the WorldatWork Journal. He is the co-author, with Professor David Young of INSEAD, of EVA and Value-Based Management. He was previously head of the compensation consulting practice at Stern Stewart & Co. and a Principal in the executive compensation practice at Towers Perrin.
Mr. Heim has been a trusted advisor to Boards and their senior management teams on all aspects of executive compensation and director compensation issues since 2004. He leads engagements for clients ranging from Fortune 500 firms to pre-IPO start-ups across multiple industries, including technology, biotech, aerospace & defense and industrial manufacturing. Specific areas of focus include pay governance, incentive plan design, pay-for-performance alignment, compensation benchmarking, proxy analysis and special compensation programs for IPO and M&A transactions.
Prior to transitioning to the consulting field, Mr. Heim worked in the corporate human resources departments of EMC Corporation, The Gillette Company and One Beacon Insurance. He regularly writes and presents on executive compensation topics for organizations such as the NACD, American College of Corporate Directors, and WorldatWork, and is also a former faculty member of WorldatWork, serving as course instructor for “Principles of Executive Rewards”.
Lauren Peek is a Principal at Compensation Advisory Partners LLC (CAP). She has over 15 years of experience advising on executive compensation strategy development, evaluating the pay and performance relationship, annual and long-term incentive plan design and corporate governance issues. Lauren advises Compensation Committees and senior management for both public and privately-held organizations with significant experience in the pharmaceutical, manufacturing and consumer products industries.
Rachel Markun advises clients regarding the corporate, tax and fiduciary issues relating to ESOPs and employee benefit plans. She has represented plan fiduciaries, employers and financial institutions in connection with legislative and regulatory initiatives relating to the Internal Revenue Code, ERISA, the federal securities laws, and the California tax laws. She has extensive tax expertise relating to tax-exempt entities including matters involving unrelated business tax issues and all aspects of retirement plan qualification issues. She represents retirement plan corporate sponsors in a variety of matters, including Internal Revenue Service audits and U.S. Department of Labor investigations.
