Integrated Finance & Accounting Solutions (IFAS)’s Post

The Compensation Committee (CC) season is kicking into gear. The CC system is the most common partner comp system used at firms with eight or more partners. For a complete guide to this system, check out our book How to Operate a Compensation Committee at https://lnkd.in/eVjCifK8. #compensation #cpafirm #cpa

Degen is developing new incentives and long-term holder compensation strategies 🚀💎

Love this in particular on the Fair Reward Framework from the High Pay Centre and Luke Hildyard : "And the indicators have been chosen on the basis of their relevance to the company’s societal impact, rather than the returns it generates for shareholders." #fairness #businessandsociety #remuneration #faireconomy #strategicpurpose #stakeholders

How do compensation committee meetings work? Jared Berman of Meridian Compensation Partners, LLC breaks down the typical annual cadence, with Q4 and Q1 being the busiest times as incentive plan results and future designs get scrutinized. But the real choreography happens behind the scenes, with advisors, management and the committee chair meticulously mapping out meeting agendas. Collaboration is key. Learn more via the link in the comments. #Compensation #Wages #SPAC #Equity #ExecutiveCompensation #Clawback

In a bid to attract and retain elite professionals, employers are increasingly incorporating non-qualified deferred compensation plans into their benefits offerings. Unlike qualified plans such as 401(k)s, which must adhere to the Employee Retirement Income Security Act guidelines, NQDC plans offer several advantages, including the ability to defer taxes, freedom from contribution limits set by the IRS, and the flexibility to incorporate a broader range of investment options.

Pleased to announce that the *Fair Reward Framework* is now live: www.fairreward.org Instigated by asset owners in partnership with High Pay Centre and with data input from Minerva Analytics Ltd, this new tool is intended to help inform investors about pay policies and practices, and to reframe the debate on exec rem. The FRF tool launches with two years of assessments covering two-thirds of the FTSE100, with further company assessments to be added in coming months. This is a pilot year and we continue to invite further feedback via the website on how you use the data and what further developments in terms of content or company universe would help to better inform your dialogues and decisions on high and low pay, and everything in between. It's been a thoughtful gestation as we've reflected on previous feedback and stress-tested the data collection process. Many thanks to Leanne Clements Shipra Gupta Vaishnavi Ravishankar as a core part of the asset owner group who've helped to drive this initiative, and to Caroline Escott Charlie Crossley Diandra Soobiah Frances Deakin Shane McCullagh, CFA Chloe Horne Stephen Barrie Mara Lilley Paddy Goffey and a cast of a few more who have all provided truly valuable support to get this out into the world. Thanks too for the many useful pieces of feedback contributed from among the investment and corporate communities during its development. The asset owner group supporting the FRF set out in 2023 to try and demystify the debate on exec rem. We believe this tool can help investors, as well as other interested stakeholders, to cut through the noise on high pay awards and gain insights into the way in which companies approach fairness and proportionality in respect of a holistic range of stakeholders and data points. As a pension fund, we at the CEPB will be integrating this data into our voting considerations and how we choose to engage with the companies in which we invest. We encourage others to dive into the FRF data, to raise your priorities with your asset managers, and to give due credit to the companies that are going beyond mandated bare minimum standards and moving towards fairer reward practices. Finally, thanks too Adam Matthews for your vision on this and Deborah Gilshan for consultancy support to Luke Hildyard in the early stages. Plus hat-tip to Clifford Singer T/A Social Spark for the snappy website.

Earlier this month, I had the opportunity to join @Roger Brossy and @Latham & Watkins to discuss 2024 trends in #ExecutiveCompensation. Check out our robust conversation on issues like the impact of recent non-compete developments, the latest changes in #DelawareLaw, and initial observations from this #ProxySeason!

Getting compensation right is an art. Most don't think too much about it up front. Then it bites you... Matt at FNDN specialises in helping leaders get the right compensation philosophy and formulas in place early. He's got some great free resources available: Compensation benchmarking tools > helps you understand where your comp models are at compared to others Database of compensation philosophies > a list of companies that have shared their approach to compensation Head to FNDN to get access. Well worth a look!!!

Compensation plan

What are the advantages and disadvantages of total shareholder return as the basis for executive compensation?