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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.
Thursday, February 20, 2014
BY VIVIAN MCINERNY | OB BLOGGER
As retailers consolidate and newspapers fold, the business of modeling shifts to ad agencies, apparel companies and new media.
Tuesday, January 21, 2014
BY JON BELL
Developers chase the rental market and change the face of Portland neighborhoods.
Friday, February 07, 2014
BY TOM COX | OB BLOGGER
President Obama's State of the Union address held lessons for all leaders.
Tuesday, January 21, 2014
Hood River company MTMCare manages medications for eligible Medicare clients.
Thursday, February 27, 2014
BY ERIC FRUITS
Because they have little chance of working for someone else, today’s teens need to be entrepreneurs. But, first, we must teach our teens that entrepreneurship starts small.
Friday, January 24, 2014
BY TOM COX | OB BLOGGER
January needn’t be a time to make well intentioned promises to yourself that you soon break.
Thursday, March 06, 2014
BY HANNAH WALLACE | OB BLOGGER
The founder of Pacific Foods talks about why his company has flown under the radar in Oregon, how saving a family-run chicken hatchery has helped his bottom line and why he thinks organic food is anything but elitist.
|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.