Connolly & Ludwig’s Post

After a slight dip recorded in last year’s proxy statements, total compensation for CEOs in the S&P 500 and the Russell 3000 rebounded in disclosure year 2024—with the strongest recovery reported among larger companies. From Harvard Law School Forum on Corporate Governance: https://lnkd.in/e2QUpgvF #compensation #ceocompensation #executivecompensation #connollyludwig #corporategovernance

The Covid-19 pandemic motivated many corporations to reassess executive compensation. New research by Carroll School professor of accounting Mary Ellen Carter and colleagues examines what went into these critical decisions during a time of crisis. Read more from Harvard Law School Forum on Corporate Governance.

This intriguing article explores a crucial shift in executive compensation strategies. By advocating for long-term stock ownership for executives, it challenges traditional short-term focused remuneration policies and aligns executive interests with those of the company and its shareholders. A must-read for anyone interested in corporate governance and sustainable business practices. #ExecutiveRewards

My recent course at Wharton Executive Education led by Christopher Armstrong provided great insights and thoughtful dialogue on the complexities of executive compensation. Classmates were located all over the world from a variety of industries providing a diverse set of experiences and perspectives. Pay transparency rules are affecting all levels - this article provides some good information. #executiveeducation #learning https://lnkd.in/g9qfnA8Q

A COMMITMENT TO CHANGE? CEO PAY AND ALIGNMENT WITH ENVIRONMENTAL, SOCIAL, AND GOVERNANCE OBJECTIVES Compensation committees traditionally seek to align executive pay with desired organizational outcomes. This qualitative study, published in our journal Corporate Ownership and Control examines whether the signatories made discernible changes to executive compensation structures to align executive incentives with a broader stakeholder view. The authors observe the compensation committee reports of 135 signatory firms’ proxy statements for the fiscal year ending 2020, to identify whether each firm’s incentive compensation structure included measures aligned with the firm’s commitment to a stakeholder focus. Nearly half of the sample firms continued to reward executives exclusively using measures to assess financial objectives, although thirteen made promises to include stakeholder corporate performance measures in their 2021 compensation programs. #corporategovernance #boardofdirectors #stakeholders #CEO #CEOpay #firmperformance #finance Find the full-text paper below https://lnkd.in/dgD4C_3P

A COMMITMENT TO CHANGE? CEO PAY AND ALIGNMENT WITH ENVIRONMENTAL, SOCIAL, AND GOVERNANCE OBJECTIVES Compensation committees traditionally seek to align executive pay with desired organizational outcomes. This qualitative study, published in our journal Corporate Ownership and Control examines whether the signatories made discernible changes to executive compensation structures to align executive incentives with a broader stakeholder view. The authors observe the compensation committee reports of 135 signatory firms’ proxy statements for the fiscal year ending 2020, to identify whether each firm’s incentive compensation structure included measures aligned with the firm’s commitment to a stakeholder focus. Nearly half of the sample firms continued to reward executives exclusively using measures to assess financial objectives, although thirteen made promises to include stakeholder corporate performance measures in their 2021 compensation programs. #corporategovernance #boardofdirectors #stakeholders #CEO #CEOpay #firmperformance #finance Find the full-text paper below https://lnkd.in/eTJNBDhZ

In today's blog, Marc Rosenberg, CPA, says, "Allocating partner income used to be a science. Now it is a fine art." He addresses the changes in systems for allocating income over the last 20 years and why firms choose a compensation committee. He also delivers tips to make yours operate like a well-oiled machine. Read the blog at https://lnkd.in/giBX3Gqn. #practicemanagement #cpa #cpafirm #compensationcommittee #

Do you know what a Remuneration Committee is? For listed companies, it’s a mandated board committee responsible for overseeing executive pay and ensuring it aligns with company performance, industry standards, and shareholder interests. A key element of corporate governance! #remunerationcommittee #corporategovernance #executivecompensation #boardcommittees

Trends and Considerations in Director Compensation: The setting of director compensation requires careful attention by the company's board of directors, as director compensation practices have undergone notable shifts in recent years. Read full article - Link here - https://ow.ly/oFS550StrVb #DirectorCompensation #BoardOfDirectors #ExecutiveCompensation #CorporateGovernance #CompensationTrends #LeadershipMatters #BusinessInsights #CorporateStrategy #ExecutivePay #CompensationCommittee #acc #corporatecounsel #generalcounsel #inhousecounsel #corporatelaw #fractionalgc #commerciallaw #businesslaw

Check out a summary of my paper with Mary Ellen Carter and Xiaoxia Peng on the Harvard Law School Forum on Corporate Governance. Our paper is forthcoming in Journal of Management Accounting Research. https://lnkd.in/eFqDSChd