Public company compensation levels and programs are a key factor in determining compensation levels in private companies. It is important that companies devise and follow a compensation philosophy as part of their compensation program, which includes public company benchmarks. Does this...

Change-in-control ("CIC") severance arrangements - arising from mergers, acquisitions, and other business combinations - have become increasingly popular among executives in particular and employees in general. CIC arrangements can have a significant financial impact on employees, as well as...

Is this happening at your company: Executives exercising their stock option, liquidating their position, and not holding the underlying stock? If so, here is some counsel on setting stock ownership guidelines

The revolution in incentive plans is turning toward the use of performance milestones. Milestones provide the ultimate flexibility as to setting goals for senior management, or all employees for that matter. What could be simpler and more effective than setting milestones for the overall success...

Regulatory changes have propelled the compensation committee onto the front stage of Corporate America. Over the past six years, compensation committees have evolved from a required nuisance evoked by the SEC in 1992, and encouraged by the introduction of the $1 million pay deduction cap in...

In business combinations, particularly those involving larger companies, pooling of interest accounting is the preferred method of valuing the combined company, resulting in a larger EPS. Pooling of interests accounting will not be allowed under certain circumstances relating to stock options...

Due to recent drops in the stock market, many U.S. publicly traded companies are considering repricing stock options for their executives. Companies must balance the need to attract and retain executives with shareholder interests, since repricings effectively separate the interests of...

A new compensation approach available to nonprofit organizations involves the grant of an option to transfer property, such as an option to purchase shares in a mutual fund at a discounted stock price. The purpose of this article is to provide an overview of the complex issues involved in...

Recent stock price drops have prompted many directors to consider repricing stock option awards. Companies must balance the need to attract and retain executives with shareholder interests, along with many other governance issues. Option repricing should only be used as a last resort, subject to...