L-Blast | May 2018
Dear All,
Summer is around the corner as another school year comes to an end and with it the first proxy season requiring CEO pay ratios. As I mentioned in a recent HBJ article, the really interesting use for the pay ratio will come in three to five years, when a given company has disclosed that figure several times and we’ll be able to see how that ratio changes as public companies grow.
It’s been a busy month for us here at NFPCC and we have some great pieces to share with you all in this edition of the L-Blast. NFPCC was invited to participate in Tudor Pickering Holt & Co’s recent Hotter N’ Hell conference. Now in its 14th year, the conference is an exclusive round up of the top movers and shakers of the energy industry. NFPCC’s Chris Crawford took part in a fireside chat on executive compensation trends with Dan Pickering and below we share with you the key highlights of this discussion.
In addition, we have two research articles we think you’ll find interesting – the first is a comprehensive report trying to leverage CEO Pay Ratio data to enact more legislation controlling compensation. The second article is on shareholder engagement, which is becoming increasingly important. Interestingly, prevalence of shareholder engagement disclosure has increased in the current proxy cycle.
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
NFPCC’s Q&A with Tudor Pickering
NFPCC was recently invited to participate in Tudor Pickering’s 2018 Hotter N’ Hell Conference. Dan Pickering quizzed NFPCC’s Chris Crawford on recent executive compensation trends in the energy sector. Here are just a few highlights from that “fireside chat”.
Additionally, NFPCC conducted an analysis of E&P companies to look at the alignment between shareholder performance and CEO short-term payouts over the past 3 years. The analysis showed many companies not in the Permian, who lost shareholder value ended up paying above target bonuses.
READ MOREVIEW NFPCC’S ANALYSIS
Rewarding or Hoarding?
AN EXAMINATION OF PAY RATIOS REVEALED BY DODD-FRANK
If your boss made your annual salary in less than a single day, how would you feel? Demoralized? Disgusted? Many Americans are now learning how pay is shared (or not). For the first time in history, U.S. publicly held corporations are now required to report how much their CEO makes in comparison to the median salary of the other workers at the company.
4 Guidelines for Shareholder Engagement in 2018
It’s safe to say that shareholder engagement is moving in the right direction. Investors are refining their expectations for boards and certainly doing a better job communicating those, whether through published letters or aligning investor voices with initiatives like the Investor Stewardship Group (ISG). On the board side, directors are increasingly recognizing the value of shareholder engagements.
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