L-Blast | November 2017
Dear All,
This holiday season we at Longecker & Associates are reminded of how truly blessed we are to watch those we advise make a difference in their companies, community and many more areas. In the spirit of advising, we have some great articles to share with you all this month regarding key issues affecting our industry.
The first is an original NFPCC article that dives into the latest hot topics currently affecting compensation, including pay for performance, pay ratio, tax reform and the impact ISS and GL have on compensation-related practices. Read on to get our take on these important issues.
The next piece we would like to share is a press release from ISS announcing peer group submission and review window for all corporations in the United States, Europe, and Canada. Companies may submit changes they have made to their self-selected peer groups for their next proxy disclosure. The window for submissions is now open and will close at 8:00 PM EST on Friday, December 8, 2017.
The third article from Bracewell is an interesting piece on the impact tax reform will have on executive compensation. The two provisions that, if enacted, would significantly change the landscape of executive compensation are Nonqualified Deferred Compensation and Section 162(m) of the Internal Revenue Code in which companies would no longer be able to deduct compensation in excess of $1 million paid in one year to any “covered employee.”
We hope you will find these articles helpful during these critical times and with the deadline for disclosure of the CEO pay ratio coming up, we encourage you to contact us for all your CEO pay ratio needs. We would also like to remind you that our Energy Pay Pulse Survey will launch December 1st and we encourage you to participate. Additionally, if you would like to learn about our key findings for our recently completed Energy Incentive Compensation Survey, please contact Josh Whittaker.
Lastly, we are excited to share with all of you that NFP Compensation Consulting has been selected by Consulting® magazine as one of the Fastest Growing Firms of 2017! We are extremely honored and grateful for not only our team but all of you who help make us successful. We hope all of you had a joyful Thanksgiving and enjoy the upcoming holidays with family and friends. We appreciate each and every one of you. As always, let us know if there is a particular subject you’d like to learn more about.
Sincerely,
The NFPCC Team
Compensation Landmines & Key Issues
“I would not give a fig for the simplicity this side of complexity, but I would give my life for the simplicity on the other side of complexity”. – Oliver Wendell Holmes, Jr.
Executive compensation practice and application is continually developing based on proxy advisory firm influence and institutional shareholder desire. Listing standards related to independence requirements for compensation committee members and the selection of their advisors are now in place, all public companies are now influenced by SOP regardless of size, pay for performance continues to be a hot button, and internal pay equity and the ratio of median company employee to the CEO is poised to be disclosed in a few short months.
ISS Announces Peer Group Submission, Review Window to Open November 20
ROCKVILLE, Md. (November 6, 2017) — Institutional Shareholder Services Inc. (“ISS”), the leading provider of end-to-end corporate governance and responsible investment solutions to the global financial community, today announced the scheduled November 20 opening of its peer group submission and review window for all corporations in the United States, Europe, and Canada.
The Impact of the Tax Cuts and Jobs Act on Executive Compensation
On November 9, 2017, the House Ways and Means Committee approved the House’s version of the tax reform bill (the “House Bill”) and voted to report it to the House floor for a full House vote. On the same day, the Senate Finance Committee released the Description of the Chairman’s Mark of the “Tax Cuts and Jobs Act” (the “Senate Finance Committee Mark”), which sets forth a summary of the Senate’s proposed tax reform legislation.
NFPCC CEO Pay Ratio Services
The deadline to disclose the CEO Pay Ratio in proxy statements is quickly approaching, contact NFPCC today for assistance in the development of the ratios and how to disclose within the proxy. In the event you have not initiated the CEO Pay Ratio discussion internally, or would like independent third party observations and recommendations, NFP Compensation Consulting is here to help. NFPCC’s internal experts have evaluated the rule, understand the various alternatives available, and keep abreast of market updates to help save our clients time and money.
FOR HELP WITH ALL YOUR CEO PAY RATIO NEEDS, CONTACT THE EXPERTS AT NFPCC.
2018 Energy Pay Pulse Survey Launches December 1
At NFPCC, we’ve designed our participant-only 2018 Energy Pay Pulse Survey to concisely and powerfully asses market trends for companies in the energy industry. The survey will capture current compensation trends as they relate to:
- Salary increases
- Employee hiring/turnover
- Anticipated bonus payouts
- Long-term incentive grant awards
- Retention-related practices
The survey is scheduled to launch on December 1, and final survey results are scheduled to be available early January. Click the button below for more information or to participate.
NFPCC Recognized in Consulting Magazine as one of the Fastest Growing Firms!
NFP Compensation Consulting was named one of the Fastest Growing Firms by ALM’s Consulting® magazine. The award is a global recognition of the industry’s top movers and shakers in terms of revenue and growth between 2013 and 2016. NFPCC qualified for the ranking with a 27 percent growth. We are honored to receive this award and thank our wonderful team for this accomplishment!
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