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...

The board of directors should make leadership and succession planning a high priority, with meaningful compensation opportunities, especially for the CEO. A strong succession planning process helps to prepare the entire organization to handle senior executive departures when they inevitably...

What effect, if any, does an ESOP have on a company's compensation philosophy and executive compensation plans and programs? Our firm recently conducted research in order to determine whether or not an ESOP materially alters compensation philosophy and executive compensation levels at public...

The Tax Cuts and Jobs Act (“Tax Reform” or “Act”) contains the most significant changes to the US Tax Code in more than thirty years. The biggest change for executive compensation is that public companies will not be able to deduct performance-based compensation. This article details...

The evolving sophistication of “mid-market” companies in the United States is demonstrated by the fact that executive compensation plan structures among many mid-cap companies have started to mirror that of top performing, large-cap companies. One of the biggest findings from Gallagher's...

There is much data on director pay for publicly traded companies, little data for private companies, and virtually no data for family-owned business that have a unique corporate governance structure. This article focuses on director pay for family-owned businesses and will provide a guideline on...

The article points out that a number of tactical issues must be addressed when preparing for an initial public offering (IPO) on a U.S.-based stock exchange. These include drafting plan documents, preparing required disclosures, and ensuring plan designs are compliant with applicable securities...

This article looks at the individual elements of compensation packages as well as design features of short-term and long-term incentive plans (STIPs and LTIPs) among CEOs and senior executives of Russell 3000 companies. Data is from companies that filed proxy statements between July 1, 2019, and...

This papers evaluates and compares the typical cash incentive structure for various "value creation" professionals, including sales people and brokers, cost savers, investment managers and advisors, and private equity professionals