When Nobody Likes Your Executive Compensation Proposal

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

Imagine submitting a compensation proposal and having the following groups express vehement opposition to it: The United Auto Workers, United Steel Workers, a U.S. Government agency (The Pension Benefit Guaranty Corp.), bondholder Wilmington Trust, pension funds in the states of Mississippi and Oklahoma, another pension fund in The Netherlands, and an investment fund manager in Austria.This is what Delphi Corp. … Read More

The New Share Plan Metrics

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

Until recently, the ubiquitous use of stock options made competitive comparisons a relatively easy process. Now, significant changes in plan design – triggered by new accounting rules, the corporate governance climate, and emerging “standards” from a variety of constituencies –render the old metrics inadequate. Overhang, run rate, Black-Scholes values, and other measures give an inaccurate view of pay levels and … Read More

How are Companies Responding to FAS123(R) and Option Expensing?

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

Over the next few months, Compensation Committees, CFOs, compensation professionals, consultants, accountants, and others will be preoccupied with the imminent adoption date (for most companies) of 1/1/06. The most common phone inquiry I receive these days is “what are other companies doing?” to which the response is “calling me to ask what other companies are doing.”Seriously, there is an obsession … Read More

Will Cox Delay Option Expensing?

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

(originally published as a Practice Alert at www.naspp.com prior to his confirmation)The resignation of William Donaldson as Chairman of the Securities and Exchange Commission (effective June 30) and the timely nomination of Christopher Cox as his replacement has caused speculation about the fate of FAS 123(R). Congressman Cox is on record as being a staunch opponent to option expensing. The … Read More

Valuation of Full-Value Long Term Incentive Awards

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

(originally published on www.CompensationStandards.com)The recent interest in alternatives to stock options – fueled by corporate governance concerns, imminent changes in accounting rules, and changes in equity markets – has led to the discussion of the appropriate “conversion rate”: how many units of the new form of award should be given in lieu of a stock option. Because options have been … Read More