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|Monday, October 01, 2007|
UNRAVELING CEO PAY
It’s not only about how much, but why.
By Linda Steffen and Bill Smith
As a result of mounting investor pressure in recent years, the U.S. Securities and Exchange Commission has changed the requirements regarding the way companies disclose and value various elements of executive compensation in their annual proxy statements that go to all shareholders.
This year’s Top 50 highest-paid CEOs in Oregon saw a modest increase in their average total compensation. On average, total CEO compensation was $1,881,007, up $59,777 from 2005. The average base salary decreased by a relatively small amount. While the average bonus increased by $170,806, decreases in stock grants and stock option awards respectively tempered the overall increase. Five executives received bonuses of more than $1 million this year, compared to last year’s ranking, when only two executives received bonuses of more than $1 million.
Pay for performance: The new disclosure requirements are intended to help investors evaluate the connection between executive pay and company financial performance. Companies must now disclose the measures, expected levels of performance, the degree of difficulty associated with meeting performance goals, and the logic behind awards.
New reporting requirements enable investors to compare the actual bonus earned for the year with what the CEOs were targeted to receive for expected performance. Twenty companies provided information that allowed for a calculation of a bonus achievement rate (actual bonus amount divided by target bonus amount). By comparing a company’s bonus achievement rate to its total return to shareholders for the year, investors can better assess the link between pay and performance.
In theory, there should be a positive correlation between bonus achievement and total shareholder return — companies with a CEO who’s earned more than their targeted award would be expected to have a positive total shareholder return. Most companies in Oregon showed the expected correlation between the pay and total shareholder return.
Although the new disclosure rules have required companies to provide broader and deeper data, the greatest challenge investors face is finding meaningful ways to interpret this information and form meaningful conclusions not only about how much is paid but also about why various programs are used.
Thursday, January 23, 2014
A conversation about MBAs with B-school deans from Marylhurst University and Oregon State University and a list of the top MBA programs in Oregon.
Tuesday, January 21, 2014
Hood River company MTMCare manages medications for eligible Medicare clients.
Thursday, January 30, 2014
BY LINDA BAKER | OB EDITOR
A conversation with Travel Oregon CEO Todd Davidson.
Tuesday, February 25, 2014
BY BRANDON SAWYER
Sales of small businesses surged in 2013 according to the biggest Internet marketplace of such transactions, BizBuySell, increasing to 7,056 reported sales, a 24% increase over 2012, when they dropped 7%. Portland Metro sales tracked by the site grew 9% to 73, capping three years of solid growth. On top of that, Portland’s median sale price jumped 67% to $250K, versus just 13% to $180K nationally. Portland was one of just six metros tracked where the median sale price matched the median asking price, with sellers getting, on average, 92% of what they asked.
Thursday, February 27, 2014
Our 100 Best Companies project turned 21 this year, so pop open the Champagne. Our latest survey gives us plenty to cheer.
Wednesday, January 15, 2014
BY MIKE GREEN | OB BLOGGER
The problem with the issue of income inequality is that it’s typically an afterthought to a region’s economic planning, and not a core priority around which primary economic strategies revolve.
Tuesday, March 04, 2014
BY DEBRA RINGOLD | GUEST CONTRIBUTOR
How can we strengthen the performance of institutions charged with teaching what Francis Fukuyama calls the social virtues (reciprocity, moral obligation, duty toward community, and trust) necessary for successful markets and democracy itself?
|The more they change, the more they stay the same|
|The 2014 List: The Top 33 Large Companies to Work, For in Oregon|
|The 2014 List: The Top 34 Medium Companies to Work, For in Oregon|
|The 2014 List: The Top 33 Small Companies to Work, For in Oregon|
|The future of money|
|Cancer to become No. 1 killer in U.S.|
|Bitcoin firm wins brief U.S. bankruptcy protection|
|Rival banana firms to merge|
|Blood test predicts Alzheimer's disease|
|Cerberus Capital to buy Safeway|
|U.S. adds 175,000 jobs|
|Bitcoin creator revealed|
Living in the beautiful Pacific Northwest means enjoying our wonderful surroundings, while remaining aware of the multiple types of natural disaster threats that we face: winter storms, windstorms, floods, landslides, earthquakes, volcanoes and tsunamis.“
Oregon State University's hospitality degree program invests in next-generation leaders.
Allowing individuals to access their own healthcare options has created more difficulty instead of making things easier. There are so many examples that illustrate why agents are more important than ever in helping businesses and individuals determine the healthcare coverage that best fits their need.
Barran Liebman is pleased to welcome Tyler Volm and Damien Munsinger as Associate Attorneys. Both Tyler and Damien represent employers and management in employment law litigation, and provide advice on a full range of employment law matters.
The 2014 World Trademark Review 1000 (“WTR”) recently named Lane Powell as one of the top trademark law firms in Oregon and Washington, and Lane Powell attorneys Kenneth R. Davis II, Parna A. Mehrbani, Frances M. Jagla and Paul D. Swanson as top individuals in the practice.
Capital Pacific Bank, a Portland-based community bank serving businesses, professionals and nonprofit organizations, today announced that it has earned recognition as a Certified B Corporation by B Lab, a nonprofit organization dedicated to building a community of socially responsible businesses. The bank is one of six financial institutions across the country to achieve B Corp status.