 |
 |
 |
|
|
|
|
 |
| The first feature article in the October 2007 issue of Executive Compensation Trends examines several important aspects of executive stock ownership guidelines revealed for the first time as a result of improved transparency in proxy disclosure. The second feature article explores CEO security benefits as part of a continuing series on executive perquisites.
|
|
| |
|
|
|
| Executive Stock Ownership Guidelines |
Ownership Guidelines Trends at Fortune 250 Companies |
| |
An Equilar analysis of executive stock ownership guidelines at Fortune 250 companies reveals the following key findings: |
| |
|
• |
In 2006, 75.5 percent of Fortune 250 companies reported the use of ownership guidelines for executive officers. This is an increase from 2005, when 70.2 percent of Fortune 250 firms had executive ownership guidelines.
|
• |
Prompted in large part by new SEC disclosure rules, 24.5 percent of Fortune 250 companies disclosed policies that include restrictions on hedging transactions.
|
Equilar clients can read the full Ownership Guidelines story here.
|
| Chief Executive Security Benefits |
Home and Personal Security Benefits at Fortune 100 Companies |
| |
An Equilar analysis of CEO security benefits at Fortune 100 companies reveals the following key findings: |
| |
|
• |
From 2005 to 2006, the median value of home and personal security benefits for Fortune 100 chief executives declined by 31.1 percent, falling from $37,194 to $25,609.
|
• |
Despite a decline in the median value of CEO security benefits, the prevalence of companies reporting this offering increased from 23.2 percent in 2005 to 53.8 percent in 2006.
|
Equilar clients can read the full Security Benefits story here.
|
To learn more about the benefits of becoming an Equilar client, please request a demo online or call (877) 441-6090.
|
|
|
|
Equilar will appear at the following conferences in November. To learn more, click on the links below to view registration and event details. For a complete list of future Equilar events, please visit the Presentations section of our website.
|
Florida Directors' Institute
Hosted by University of Tampa
November 2, 2007
Tampa, FL
|
|
Bank Executive & Board Compensation
Hosted by Bank Director
November 13-14, 2007
Las Colinas, TX
|
|
Directors' Summit
Hosted by University of Wisconsin
November 15-16, 2007
Madison, WI
|
|
|
|
|
|
|
|
|
|
Equilar's research appeared in numerous articles in October. To learn more, click on the selected links below. For a complete list of articles featuring Equilar research, visit the News & Publications section of our website.
|
Shake-Up and Job Cuts at Bank of America
October 25, 2007
|
|
"Keith Banks, 51, who runs the Columbia Management mutual fund arm, will succeed Mr. Moyihan as the head of wealth management. Mr. Taylor, who Equilar says will leave with a $35 million exit package, will stay on until the end of the year."
|
Restricted Stock, Performance Awards Popular With Fortune 1000, Study Finds
October 22, 2007
|
|
"According to Equilar's research manager, Alexander Cwirko-Godycki, the main drivers of the trends in equity compensation are FAS 123R's requirements for expensing stock options, shareholders' concerns over dilution, and the SEC's amended disclosure rules."
|
The Sky's No Limit for CEO Perks
October 18, 2007
|
|
"Last year, the latest year for which numbers are available, 73 of the Fortune 100 companies reported that their CEOs used the corporate jet for personal travel, up from 65 in 2005 and 57 in 2004, according to Equilar, an executive-compensation research firm in Redwood Shores, Calif."
|
Large Stock-Options Grants May Hurt Investors
October 17, 2007
|
|
"In a study I did this year of 542 U.S. companies with market caps of at least $3 billion during 2006, I found that the median CEO, who had 4.8 years' tenure at the end of 2006, was holding $18 million of real shares. He was also holding unexercised options granted in past years that contained a paper profit of another $14 million. Data were obtained from Equilar."
|
Clawback Policies for CEO Pay Rising Swiftly
October 16, 2007
|
|
"Such 'clawback' policies are growing rapidly among large companies, compensation experts say. According to compensation research firm Equilar, the number of Fortune 100 companies disclosing such policies has more than doubled, from 17 percent in 2005 to 42 percent last year."
|
Spotlight Shines Brighter on Comp Committees
October 15, 2007
|
|
"Comp committee chairs earned a median of $12,500 in committee pay among the S&P 1500 last year, according to Equilar's 2007 Compensation Committee Trends Report. That's a 5.8% increase from 2005. The pay hasn't caught up with the audit committee chair, who earned a median of $20,000 in 2006."
|
Boards Take Hatchet to Executive Perks
October 15, 2007
|
|
"Of the 42 companies that have scaled back on the perks they award their executives, 46.7% and 36.7% dumped company cars and club memberships, respectively, Equilar data shows. Another 30% scrapped financial planning and 23% got rid of tax gross-ups."
|
Smaller Perk Packages for CEOs
October 11, 2007
|
|
"Equilar is quick to point out that the drop in certain perks is driven in part by the new rule itself rather than any resulting change in behavior: Because the old rules only forced disclosures of individual perks worth $50,000 and up, the non-itemized ones below that threshold couldn't be calculated into the averages for past years."
|
SEC May Take Hard Look at Stock-Pay Plans
October 9, 2007
|
|
"At least one executive at nearly half of Silicon Valley's 150 largest companies uses a trading plan, compared with about one-third of Fortune 500 companies. This count is probably low, however, because companies aren't required to disclose them, Equilar said."
|
Payback Time for Ahold's Ex-Executives
October 5, 2007
|
|
"Clawback arrangements are becoming increasingly common. A recent study by Equilar, the executive compensation consulting firm, found that 42 percent of the publicly traded members of the Fortune 100 disclosed clawback provisions in 2006, compared with about 17 percent in 2005."
|
Ellison's $53 Million Pay Beats Ballmer, Palmisano
October 3, 2007
|
|
"Ellison has been Oracle's CEO since he co-founded the company in 1977, so he's responsible for each year's result, good or the bad, since then. I looked at 15 major U.S. companies (including Oracle) in the computer, computer storage, semiconductor and software industries, all with current market caps of at least $10 billion. Equilar Inc. provided the raw data for this analysis."
|
Best-Paid Executives: The Gender Gap Exaggerated
October 2, 2007
|
|
"Indeed, Zoe Cruz, co-president of Morgan Stanley, took home $30 million in total compensation last year, making her the best-paid corporate woman, according to Fortune's annual list. Equilar Inc., a Redwood Shores, Calif.-based compensation research firm, calculated the results for Fortune."
|
25 Highest-Paid Women
October 1, 2007
|
|
"Which corporate women raked it in - and how much did they earn? Equilar, an executive compensation research firm in Redwood Shores, Calif., prepared the chart by looking at companies with more than $1 billion in revenues that filed proxies by Sept. 1."
|
25 Highest-Paid Men
October 1, 2007
|
|
"See how the best-compensated male executives' paychecks compare. Equilar, an executive compensation research firm in Redwood Shores, Calif., prepared the chart by looking at companies with more than $1 billion in revenues that filed proxies by Sept. 1."
|
The CEO's Agent
October 1, 2007
|
|
"Today, 62 percent of Fortune 100 CEOs have severance packages in place that provide pay in the event of termination for good reason and without cause, according to Equilar, which benchmarks trends in executive and board compensation."
|
| Members of the press who are interested in obtaining Equilar research for their stories should feel free to contact Equilar at press@equilar.com. |
|
|
|
|
|
|
|
| |
To cite Equilar research in your story, blog, presentation, or newsletter:
- Please refer to Equilar as "Equilar, Inc., an executive compensation research firm" with a hyperlink to our homepage at http://www.equilar.com/.
- To cite an entire article, please refer to individual articles for further instructions.
|
|
|
 |
2007 Equity
Trends Report
|
To learn more
click the following link: |
|
 |
2007 Chief HR Compensation
Trends Report
|
To learn more
click the following link: |
|
 |
2007 Compensation
Committee Trends
Report
|
To learn more
click the following link: |
|
|
|
| |
New Blog Posting
Insights on Executive Compensation Disclosure Trends
Equilar CEO David Chun shares interesting compensation trends and practices seen in the marketplace while offering independent and objective analysis. To read his latest entry on ownership guidelines, please click the following link:
|
|
|
|
|
| |
Equilar Has Moved...
Equilar, Inc. is pleased to announce that we have moved to a new location effective July 21, 2007. Please take a moment to update your records accordingly.
NEW ADDRESS:
303 Twin Dolphin Drive
Suite 201
Redwood Shores, CA 94065
Toll Free: (877) 441-6090
Fax: (650) 802-8591
TEAM CONTACTS:
Direct phone numbers to reach Equilar team members will not be changing. For a directory of phone numbers for our current employees, please feel free to call our main line at (650) 286-4512.
|
|
|
|
|
| |
Equilar Forms Strategic Alliance with HR Policy Association
HR Policy Association and Equilar recently announced the formation of a strategic alliance to provide HR Policy Association members with the benefit of information, analyses and benchmarking studies on executive and director compensation. To learn more, please read the press release below.
|
|
| |
|
|
|
Careers at Equilar
Equilar is looking for strong
candidates to fill key positions across all departments. To learn more about opportunities at Equilar, please visit our
careers page by clicking on the link below:
Equilar Careers Page |
|
| |
|
|
|
Newsletter
Feedback
As part of Equilar's
ongoing effort to improve the quality of our products and
services, we would like to encourage our readers to provide
feedback on this newsletter. Please click on the link below to
participate in our survey. Thank you for your
suggestions!
Newsletter Feedback
|
|
| |
|
|
|
|
| |
| |
|
|
|
CONTACT EQUILAR
Tell us what you think! The Equilar newsletter team would love to hear your suggestions and ideas about research that you would like to see in our newsletter. For article suggestions, questions, or general comments, please e-mail Alexander Cwirko-Godycki at acg@equilar.com. For inquiries about our on-line database products or custom research services, please call (877) 441-6090 or e-mail info@equilar.com. Please also visit our Web site at http://www.equilar.com/ for more information. We look forward to assisting you with your compensation analysis needs.
To subscribe to this newsletter, please click here. To unsubscribe, please send an e-mail with the subject line, "ECT Unsubscribe" to unsubscribe@equilar.com. Please do not reply to this email.
DISCLAIMER
The information and analysis in this e-mail and attachments are intended to be for informational purposes only. The analysis is based on information taken from publicly filed documents and we do not represent to its accuracy. Equilar, Inc. assumes no liability for the use or interpretation of information contained herein. This publication is provided "as is" without warranty of any kind, either expressed or implied, including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement of third party rights.
|
|
