L-Blast | November 2019
Dear All,
The holidays are upon us and the end of the year is quickly approaching. It has been an interesting year for us here at NFPCC but in this month of Thanksgiving, we reflect on all our blessings and are thankful we can still say we had a successful year, despite its challenges. This is also a month to honor our veterans and be grateful for their service. A heartfelt thank you to two special NFPCC veterans – Daniel Wilson and Josh Whittaker.
We have great articles to share with you in this month’s L-Blast. In response to questions we have gotten from some of you, the first piece is an NFPCC article that examines compensation across various industries, noting similarities and close alignment with regards to executive pay. We hope we have answered your questions and addressed your concerns.
The second piece is regarding ISS’ recently released updates to proxy voting policies. As we head into a new proxy season, we consider it important to share our thoughts and key changes as outlined in ISS’ proxy voting guidelines for 2020. Follow the link on our blog to view the full report from ISS.
The third article is a great read on executive compensation best practices for private companies. It highlights the importance of implementing long-term incentive plans in all companies, regardless of revenue. It notes one critical rule, which NFPCC agrees with – that is to ensure plans align with the company’s long-term goals.
Also, our 2020 Energy Pay Pulse Survey opens December 1st, for those of you in the energy sector. This is your opportunity to be a step ahead of the market and gain powerful insights on compensation decisions your competitors are planning to make in the next cycle.
Lastly, we are proud to announce we are the recipient of two important awards that mean a lot to us. This is our tenth year to make the Best Companies to Work for in Texas list! And for the third consecutive year, we are one of Consulting magazine’s Fastest Growing Firms. A sincere thanks to our team and our clients who have made these awards possible!
We wish you and your loved ones a wonderful Thanksgiving! As always, let us know if there is a particular subject you’d like to learn more about or if you have any questions about the topics covered in this L-Blast.
Sincerely,
The NFPCC Team
Executive Compensation Across Industries
Major components (or “buckets”) of executive compensation are fundamentally similar in publicly traded companies across all industries. We at NFPCC understand that although similar in function, there are certainly unique characteristics in every company’s respective compensation philosophy and pay programs. It is, however, worth mentioning that no matter how unique a company may be (i.e. industry), NFPCC has found more similarity among pay practices within public companies operating in different industries than not.
READ MOREISS Proxy Voting Guidelines Updates for 2020
NFPCC notes that the direct impact ISS is having continues to be relatively unchanged in 2019. However, going forward into 2020 with new policy changes in place and the rise in shareholder activism, NFPCC believes ISS and institutional investors alike will continue to increase pressure on Compensation Committees. NFPCC notes that no significant ISS Policy Changes were made surrounding executive compensation for fiscal 2019; however, there are several policy updates for 2020. The policy updates for 2020 that stood out to NFPCC have been outlined below.
Executive Compensation 2020: The Most Important Thing Private Companies Should Do Now
Compensation is one of the most strategic tools companies have at their disposal to attract top-notch talent, retain best performing executives and motivate the leadership team to achieve their objectives. In this era of near-record low unemployment and constant disruption, talent strategies are critical to success. Yet, while most private companies spend a significant amount of money on executive compensation, they are not spending it optimally, according to Chief Executive’s annual compensation research of more than 1,500 companies.
READ MORE2020 Energy Pay Pulse Survey
OPENS DECEMBER 1st
Want to know what compensation decisions your competitors are planning to make in the future? Keep your finger on the market’s pulse by participating in NFP Compensation Consulting’ 2020 Energy Pay Pulse Survey. The survey will capture compensation data in the following areas:
- Salary increases
- Employee headcount
- Anticipated bonus payouts
- Long-term incentive awards
- Severance treatment
NFPCC Honors Our Veterans
NFPCC proudly honors all veterans who have selflessly served our great country. In particular, we would like to recognize two special veterans who are members of the NFPCC team – Daniel Wilson and Josh Whittaker.
WE ARE GRATEFUL FOR YOUR SERVICE!NFPCC Wins Two Important Awards
We are very excited to be the recipients of these two awards – Best Companies to Work for in Texas and Consulting® Magazine’s Fastest Growing Firms. Read all about it on our blog.
BEST COMPANIES TO WORK FOR IN TEXAS » CONSULTING’S FASTEST GROWING FIRMS »View our upcoming events»
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