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|Archives - October 2007|
|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, October 15, 2014
BY DIANE BUISMAN
Some common misconceptions employers have about marijuana.
Wednesday, August 27, 2014
Kim Ierian, President of Concorde Career Colleges, and Deborah Edward, Executive Director of Business for Culture & the Arts, share their recent reads.
Tuesday, October 14, 2014
BY JONATHAN FROCHTZWAJG
A flare-up in the Elliott Forest raises questions about détente in Oregon’s timber wars.
Tuesday, August 26, 2014
BY JENNIFER MARGULIS
In 2012 The Dalles, a city of some 14,400 located 75 miles east of Portland and often seen as the poor cousin to adjacent Hood River, completed a massive project to revitalize its dock.
Tuesday, August 26, 2014
Parents and students paying for college today are like homeowners who bought a house just before the housing bubble burst.
Friday, September 12, 2014
BY TOM COX | OB BLOGGER
I often talk about what leaders can do. What about followers? If you’re a team member and you’d like to add positivity to your team, what might you do?
Thursday, September 25, 2014
BY JOE ROJAS-BURKE
Antibiotics really aren’t magic bullets.
|The 100 Best Nonprofits to Work for in Oregon 2014|
|A Recipe for Success|
|GE profit rises 11%|
|Google profits slide 5%|
|HBO to launch streaming service|
|Mattel sales decline for fourth straight quarter|
|Converse sues to protect Chuck Taylor All Stars|
|Second U.S. health worker infected with Ebola|
|Wells Fargo profit climbs to $5.73B|
Is your business ready to join us in the call for action? This opening panel includes Oregon businesses who will discuss why they signed the Oregon Climate Declaration, the investments they are making to reduce carbon emissions, and how their actions are affecting their companies.
Get ready for two days of special events produced with the EPA, Portland Timbers and ISOS before and after the GoGreen Conference on October 16.
The right financing at the right time is critical for small businesses to succeed.
Among Oregon universities, Oregon Tech is special in the way it incorporates applied research into the curricula of every department.
Bank of America partners with nonprofits to create opportunities for women and drive economic growth.
More than 400 "Change Makers" will gather to invest in a socially sustainable community.