Read the article here.
Tuesday, December 9, 2014
Tuesday, November 25, 2014
Advanced Micro Shareholder Sues Over New CEO’s Stock Grant
An Advanced Micro Devices Inc. (AMD) investor accused company directors of violating an executive-compensation plan by giving new Chief Executive Officer Lisa Su more than 6 million shares as part of her pay package.
Su, tapped to run the troubled computer chipmaker last month, was awarded more than 6.4 million AMD shares in violation of the company’s pay plan, which limits such awards to 3 million shares per year, shareholder Thuan Hong said today in a Delaware Chancery Court lawsuit.
Nov 24, 2014 9:07 PM, BloombergRead more here.
What’s a CEO Really Worth? Too Many Companies Simply Don’t Know
The pay that CEOs and other executives receive is not aligned well with company performance, primarily because companies and boards lack the tools to accurately measure how much success executives are actually having in their jobs, a new study concludes.
The new report, from the nonprofit Investor Responsibility Research Center Institute and consultancy Organizational Capital Partners, set out to determine how well executive compensation among S&P 1500 companies was aligned with company performance and shareholder returns. “The expectation was that the analysis could usefully serve as a marker in the ground,” the firms wrote in its report, “and yet what it uncovered was unexpected.”
IRRCi is a research firm that was formed after its parent was sold to Institutional Shareholder Services. OCP is a corporate consultancy operating in the U.S. and Europe. You can read the full report here.
More Transparency, More Pay for C.E.O.s
“It’s very seldom that publishing compensation accomplishes much for the shareholders. No C.E.O. looks at a proxy statement and comes away saying, ‘I should be paid less.’ ”
Warren Buffett made that contrarian argument earlier this year, at the annual meeting of Berkshire Hathaway, about the steady push for companies to disclose compensation in increasingly specific detail in the name of transparency.
It was an intriguing, counterintuitive point, but largely anecdotal.
Now, a study by three professors at the University of Cambridgemay help prove Mr. Buffett’s assertion.
The study shows in devastating detail how compensation consultants — which use the increasingly available public data on compensation to advise boards on how much to pay chief executives — are helping to ratchet up the pay for the nation’s top executives.
By ANDREW ROSS SORKIN, NOVEMBER 10, 2014, New york times
read more here.
Monday, November 10, 2014
The Best-Performing CEOs in the World
The knock on most business leaders is that they don’t take the long view—that they’re fixated on achieving short-term goals to lift their pay. So which global CEOs actually delivered solid results over the long run? Our 2014 list of top performers provides an objective answer.- Adi Ignatius, Harvard Business Review
See the list here.
Tuesday, October 14, 2014
Berkshire's Buffett: Coke pay plan makes 'great sense'- CNBC
Warren Buffett, the billionaire chairman and chief executive officer of conglomerate Berkshire Hathaway Inc , praised Coca-Cola's altered executive compensation plan on Thursday.
"I think the new plan makes great, great sense," Buffett told cable business channel CNBC, referring to Coca-Cola's new guidelines to limit the executive compensation plan, starting next year.
"I think it’s remarkable what Coke did," said Buffett, whose Berkshire Hathaway is the company's biggest shareholder with a 9.1 percent stake. Referring to Maria Elena Lagomasino, chair of Coca-Cola’s compensation committee, Buffett said, "I tip my hat to her."
Buffett said he felt as good as ever about his investment in Coca-Cola. He told CNBC earlier this year he had abstained from a shareholder vote on its controversial equity compensation plan when it came up for renewal in April, even though he considered it excessive. -(Reporting by Sam Forgione in New York; Editing by Jeffrey Benkoe) Thursday, October 02, 2014
Read more here.
"I think the new plan makes great, great sense," Buffett told cable business channel CNBC, referring to Coca-Cola's new guidelines to limit the executive compensation plan, starting next year.
"I think it’s remarkable what Coke did," said Buffett, whose Berkshire Hathaway is the company's biggest shareholder with a 9.1 percent stake. Referring to Maria Elena Lagomasino, chair of Coca-Cola’s compensation committee, Buffett said, "I tip my hat to her."
Buffett said he felt as good as ever about his investment in Coca-Cola. He told CNBC earlier this year he had abstained from a shareholder vote on its controversial equity compensation plan when it came up for renewal in April, even though he considered it excessive. -(Reporting by Sam Forgione in New York; Editing by Jeffrey Benkoe) Thursday, October 02, 2014
Read more here.
eBay and PayPal CEOs to Be Well Compensated Post-Breakup
Executives who will take over as CEOs after eBay breaks up into two publicly-traded companies next year will be well compensated, according to filings with the SEC. eBay announced the breakup on Tuesday and said current eBay Inc. CEO John Donahoe would step down after overseeing the split.
Dan Schulman was named President of PayPal on Tuesday. Filings show he earns an annual base salary of $900,000 with a target bonus of 175% of his base salary. After the spin-off, his salary will increase to $1 million with a target bonus of 200% of his new base salary. - By Ina Steiner EcommerceBytes.com
Read more here.
Dan Schulman was named President of PayPal on Tuesday. Filings show he earns an annual base salary of $900,000 with a target bonus of 175% of his base salary. After the spin-off, his salary will increase to $1 million with a target bonus of 200% of his new base salary. - By Ina Steiner EcommerceBytes.com
Read more here.
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