L-Blast | January 2018
Dear All,
We are well into the start of the new year and although 2018 has greeted us with some extremely cold temperatures that paralyzed our city for a couple of days, we at NFPCC have hit the ground running and are gearing up for proxy season. In this first L-Blast of 2018 we have some important articles to share with you all.
The first article is an NFPCC original that provides insights into the controversial topic of executive compensation perks and the continued demand for transparent executive compensation disclosure. Although there is no magic formula, operating in the best interest of shareholders under board of director leadership is key.
The second piece is especially important as we all begin to process the changes brought on by the Tax Cut and Jobs Act. As explained in the article, tax-exempt employers are now faced with an excise tax that will require development of sound strategies to adjust to the new statutory changes. Furthermore, NFPCC has put together a summary of the effects the bill will have on executive compensation. We invite you to download the summary and reach out to us with any questions you may have.
NFPCC recently conducted its 2017/2018 Energy Pay Pulse Survey and has finalized survey results. We have included a brief overview of the most notable findings. Please feel free to contact us if you have any questions or are interested in participating in the next Energy Pay Pulse Survey.
We would like to remind you that NFPCC’s CEO Pay Ratio specialists are availabe to assist you. Give us a call for help in the development of the ratio and how to disclose within the proxy.
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
Executive Compensation Perks
The start of the new year has brought with it a strong demand for continued and enhanced transparent executive compensation disclosure. Many companies have been accused of paying out excessively large perquisites and benefits to their executives, causing many companies to cut back on executive perks, but not as much as some shareholders would like. For some, it is much easier to recognize an unreasonable perk than a reasonable one. However, for all the criticism they receive, executive perks can be an invaluable investment to help grow the company by attracting and/or retaining exceptional executives.
How Can a Tax-Exempt Employer Manage the New Excise Tax on Compensation?
ISS released its updated proxy voting policies effective for annual meetings held on or after February 1, 2018, which are available here. We previewed ISS’s proposed voting policy changes in our Alert available here. The policy changes include several new policies, as well as codification of existing policies focusing primarily board composition, accountability and responsiveness.
NFPCC SPECIAL COMMUNICATION: What the Tax Bill Means for Executive Compensation
While it will take more time for the country’s citizens and corporate world alike to truly understand the bill’s impacts, there are certain implications in the world of executive compensation that we wanted to address at a high level. Download NFPCC’s summary below and let us know if you have any questions. We will continue to monitor the effects of the tax bill on and keep you updated as new information develops.
NFPCC Releases Results for its Annual Energy Pay Pulse Survey
Through our Energy Pay Pulse Survey, NFPCC continues to comprehensively assess trends within the energy industry and observe the changes which are taking place to reflect the importance of retaining top talent. This year’s survey generated notable results:
- Based on performance forecasts versus formula, annual incentive payouts for 2017 performance are projected to be between 100-125% of target;
- Overall, 76% of organizations are projected to maintain LTI award values in 2018.
NFPCC CEO Pay Ratio Services
The deadline to disclose the CEO Pay Ratio in proxy statements is quickly approaching and NFPCC is here to help. Our internal experts have evaluated the rule, understand the various alternatives available, and keep abreast of market updates to save our clients time and money.
CONTACT THE EXPERTS AT NFPCC FOR ALL YOUR CEO PAY RATIO NEEDS.
To download a copy of the L-Blast or see a PDF version click the link below:
