To The Compensation Committee Adviser, Look Over There!

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

I have a large backlog of topics to address on this blog and until I do I’ll direct you to some other content I’ve developed – look over there! The Compensation Committee Adviser: Global Warming and Compensation Committees – Institutional Shareholder Services (ISS) adds the newest layer of opinion to the executive compensation debate, joining the IRS, SEC, Moody’s and … Read More

We Have Problems with Auditors? Who’s “We” Kemo Sabe?

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

As you may have deduced from my posting Peek-a-Boo I See You (and your Black-Scholes assumptions) on 23 October 2006, I have some issues with the Public Company Accounting Oversight Board’s positions about option valuation. (This is minor compared to the position of some, like Ken Starr, who has issues with the mere existence of PCAOB.) PCAOB’s comments about assumptions … Read More

To the Trucking Industry: Hire Me!

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

An article in today’s CFO.com email blast – “Will a Driver Shortage Cost Companies?” – highlights the need for ROI analysis of compensation practices. A spokesperson for GE Capital is quoted: “Truck driver turnover ranges between 130 percent and 140 percent, which equates to replacing employees every eight months, Tse says. “It takes a toll on the organization both from … Read More

Peek-a-Boo I See You (and your Black Scholes assumptions)

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

I try to stay on top of what has become an almost-daily flow of news affecting executive and equity-based compensation. But I’ll admit that I hadn’t seen the Public Company Accounting Oversight Board’s (“PCAOB” which apparently is sometimes pronounced “peek-a-boo” in accounting circles) new statement, issued 17 October, regarding the valuation of stock options, when I wrote the preceding blog … Read More

The Uncertain Value of (Backdated) Options

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

An article posted this week on CFO.com, “What’s a Backdated Stock Option Worth?” discussed an issue underlying some of the current option backdating controversy: If backdating (however defined) occurred, what is the dollar amount of the event? The article highlights a fundamental discrepancy between two accounting rules, APB25 and FAS123. The author makes the point, reinforced by a consultant, that … Read More

How the Government Data, not Stock Options, Muddles the Relationship Among Wages, Corporate Profits and Inflation

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

Here we go, now stock options did something wrong again.Have I not been saying for many years that the US Government data, coming from the Bureau of Labor Statistics, Bureau of Economic Analysis, and other agencies are just plain wrong? Most recently I pointed this out in The Myth of the Average Worker Pay Ratio. Today in the Wall Street … Read More

The New Return on Investment of Executive Pay

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

In May 2006, I presented at WorldatWork’s Annual Conference a session titled “The Real Meaning of Return Of Investment…for HR Professionals.” It was a financially-oriented look at how HR folks need to present their ideas – in dollars, just like the other areas of the business organization. I was thrilled to learn that it was named “Best of Conference” (though … Read More

A Little Hard on the Human Resource Profession, Huh?

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

That was the one-line email I received after sending my article “The Governance Implications of Option Backdating,” just published in the Corporate Governance Advisor, to a client of mine. He happens to be the SVP of HR. I won’t post the entire article here but rather will refer you to the publication’s website and will post the section that led … Read More

Financial Solutions for Human Resources

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

I think many were taken aback by my three-part infomercial published and distributed at the SHRM Conference. In it, I suggested that HR continues to overlook the need for financially-oriented business-based solutions as the field continues to get waylaid into concepts like “work-life” and such.Not being a soccer (sorry, “football”) fan, I have paid scant attention to the World Cup. … Read More