Employee voice shifts from "where" to "why" of the company

Greater emphasis on leadership, empathy, and understanding team members' values

Career perspective shortens from years to months

Retaining top talent is crucial; understand reasons for employee departures

Companies must support education to keep pace with advancing technology

All states have taken varied action on ESG investing, with some similarities

SEC's aggressive 2023 agenda may be influenced by election outcomes in 2024

Bipartisan alignment possible on executive compensation for cases of excessive packages in failed banks or companies

Multiple state privacy bills will impact companies' policies on personal information for employers and vendors

Proxy statements are crucial for company communication, reflecting its story. Engage compensation consultants to ensure effective storytelling

CEOs should view CHROs as talent development partners, beyond compensation and benefits expertise

CHROs play a vital role in bridging the generation gap and developing talent

Concerns arise when activists bring information to the board that should already be known, causing sleepless nights for company leaders

PvP introduces “moving part risk” necessitating alignment of responsibilities and controls

Collaborative efforts and input from the right team and third-party experts are crucial for successful PvP disclosure stories and proxy reporting

PvP represents the proxy’s increasing quantitative complexity

Understanding the reasons behind any discrepancy between CAP (Compensation Actually Paid) and TSR (Total Shareholder Return) directionality is essential

Maintain comprehensive records for future reference to understand awards and their valuation, evolving through analytics and case studies, requiring skill development

Three focus periods: High growth, initial market downturn, and new market paradigm

High Growth: Target top pay, equity-weighted, competitive total pay, performance-based, and peer parity

Initial market downturn: Short-term actions like hiring freezes, top-up for critical talent, and equity gap evaluation for new hires, while developing long-term risk mitigation strategies

New market paradigm: Emphasis on profitability and efficiency, align equity strategy with growth prospects, and lower target pay positioning

Begin HRIS prep work ahead of pay equity audit, considering thoughtful employee grouping based on roles and verticals

Involve legal and outside counsel in pay equity determination to protect data and emails under legal privilege

Highlight that ad hoc analysis lacks statistical analysis and comprehensive company-wide insights

Prioritize shareholder engagement regarding pay disclosure, negotiate with activists for adjusted pay ratio approval instead of both ratios

E&S issues are a top concern for investors

ESG metrics are widely used and lack a standardized classification

A true ESG business strategy is essential before adopting ESG metrics

Establishing a clear ESG strategy will determine the specific ESG metrics a company will assess and employ

Compensation committee charters expand to include talent pipelines, culture and ethics, employee engagement, and pay equity

ESG is a consideration in every committee, while the management team is responsible for overall ESG aspects

Key performance indicators (KPIs) for recruiting, turnover, and social responsibility: new hires, high turnover, and diversity by level

"Ready-now" successors are individuals prepared for a role within one year, while "Ready" successors can step in within one to two years

Clawback provisions gain attention, mostly in SEC-compliant form

Strategic use of awards to retain key talent is crucial

Valuations decline due to volatility, inflation and labor market issues, impacting grants for new hires and retention awards

Education and communication to executives are budgeted and fundamental in most companies' share plans

Iron Mountain rolled out the plan gradually, starting with the C-suite, followed by SVP/EVP levels, and then VP/Director levels

The team is firm on the selection and has no provisions to revert choices or assist with losses over time or performance

Executives primarily have performance-based plan choices, even in conservative options

100% PSU options were exclusively offered to C-suite members

Pre-arranged trades mitigate insider trading concerns

Issuers can utilize 10b5-1 to purchase shares

10b5-1 allows insiders to liquidate positions during closed windows

New conditions tighten the affirmative defense

Rule prohibits overlapping plans, except for sell-to-cover transactions

The "S" in ESG is increasingly vital for talent attraction and retention

Cashless ESPP participation enhances ESG scores

Cashless ESPPs reduce employee turnover by up to 60% and should be considered in all retention programs

Employee understanding of the equity program is crucial for their appreciation of its value

Surveys indicate a disconnect between employee satisfaction (64%) and administrators' perception of satisfaction (85%)

Recommended frequency of significant communication about stock plans is four to five times per year

Education on equity programs can be achieved through PDFs, websites, and videos, considering varying levels of employee knowledge and priorities

Incorporating equity plans into broader financial planning discussions is a best practice, increasing confidence and satisfaction among employees