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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.
Wednesday, April 29, 2015
BY JACOB PALMER | DIGITAL NEWS EDITOR
Portland is awash in rideshare options. We ask the head of Flywheel what sets his app apart.
Friday, April 24, 2015
BY BEN DEJARNETTE | INVESTIGATEWEST
Timber companies and environmental groups take a stab at collaboration to boost logging and restoration in Oregon fires.
Wednesday, May 20, 2015
BY KIM MOORE | RESEARCH EDITOR
An earthquake would completely destroy many Oregon businesses, highlighting the urgent need for the private and public sectors to collaborate on shoring up disaster preparedness, said panelists at an Oregon Business breakfast summit today.
Monday, April 13, 2015
BY GRANT KIRBY | OP-ED CONTRIBUTOR
The mega-shift from technology-driven to data-driven organizations raises questions about Oregon’s workforce preparedness.
Monday, April 27, 2015
BY LINDA BAKER
Oregon already ranks as the nation’s second largest generator of hydroelectric power. (Washington is No. 1). Now an elegant new installation in Portland is putting an unconventional, sharing economy twist on this age-old water-energy pairing. The new system, launched this winter, uses the flow of water inside city water pipes to spin four turbines that produce electricity for Portland General Electric customers.
Wednesday, April 01, 2015
BY LINDA BAKER
Leaders in Oregon's ag sector gathered this morning in Portland’s Coopers Hall winery/taproom to discuss the role of the region as an export gateway, impediments to exporting products and solutions to containerized shipping challenges.
Thursday, April 23, 2015
BY JACOB PALMER | DIGITAL NEWS EDITOR
The entrepreneurial spirit was alive and well at the Oregon Angel showcase, an annual event for angel investors and early stage entrepreneurs.
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Tonkon Torp helps seed sustainability at Gunderson.
Oregon-based Environments helps companies create inspired workspaces. “Simply put, we help companies future-proof their workspaces,” says Chris Corrado, president. Since 1988,Environments has witnessed firsthand the changing landscape of business. Native Portlander and Environments founder Corrado says, “We help our clients navigate the complex realities of the workplace today and plan for their future in a very mindful, strategic way. We think of ourselves as their partners in the process.”
One hundred years ago, the Willamette River might easily have been mistaken for a sewer. Unchecked industrial activity and decades of pollution made it unrecognizable compared to the clean river that now flows north for 187 miles from Eugene through the center of Portland.
Sussman Shank LLP served as lead counsel for both the sale of 9 assisted living, memory care, and independent living campuses in Washington, Oregon, and California to a publicly-traded REIT, and the acquisition of 11 single-tenant net lease properties. This transaction was unique because it included both the sale of licensed senior housing facilities and a complicated 1031 tax deferred exchange transaction.
The Oregon Entrepreneurs Network (OEN) will be presenting its third annual Entrepreneurial Summit on Friday, June 5 at Castaway in Portland, Oregon.
On June 13th Mayor Charlie Hales will attend nonprofit organization Dream Change’s inaugural Love Summit and will introduce one of its keynote speakers, Dan Wieden of Wieden+Kennedy advertising agency.