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CEOs Executive Compensation

Lowenstein Sandler LLP

Corporate Governance Takeaways Following Rescission of Elon Musk’s $55.8 Billion Equity Compensation Package

“Was the richest person in the world overpaid?” That’s how the Delaware Court of Chancery (the Court) began the 200-page opinion in Tornetta v. Musk to rescind Elon Musk’s entire $55.8 billion 10-year equity compensation...more

A&O Shearman

Was the richest person in the world overpaid?

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Chancellor Kathleen McCormick of the Delaware Court of Chancery grappled with this question in a recent derivative lawsuit challenging Tesla’s performance-based equity award with a potential USD55.8 billion maximum value and...more

Skadden, Arps, Slate, Meagher & Flom LLP

Matters To Consider for the 2024 Annual Meeting and Reporting Season

Companies have important decisions to make as they prepare for the 2024 annual meeting and reporting season. We have compiled this overview of the latest key issues — including SEC disclosure requirements, SEC guidance,...more

Mintz

Don't Provoke a Pity Party

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Today's Wall Street Journal story about the CEO whose "Pity City" comments provoked outrage after a viral TikTok premiere is yet another cautionary tale about the instant infamy social media brings to an employer's gaffes. ...more

McCarter & English, LLP

SEC Adopts New Executive Compensation Clawback Rules for Public Companies

On November 28, 2022, the Securities and Exchange Commission (the SEC) published final clawback rules (the Final Rules) in response to the long-standing requirement under Section 954 of the Dodd-Frank Wall Street Reform and...more

Vinson & Elkins LLP

Not Lovin’ It: SEC’s Settlement With McDonald’s Former CEO Highlights Continued Focus on Executive-Related Disclosures

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On January 9, 2023, the Securities and Exchange Commission (“SEC”) issued a cease-and-desist order (the “Order”)1 charging McDonald’s Corporation (“McDonald’s”) and its ex-CEO, Stephen Easterbrook, with multiple disclosure...more

NAVEX

Renewed Focus on SOX 304 Compliance Stresses Need for Culture of Compliance, Executive Accountability

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The Department of Justice and the Securities and Exchange Commission have signaled in recent months that they have reinvigorated their focus on executive compensation claw backs, urging companies to adopt compensation...more

Husch Blackwell LLP

The SEC's Long-Delayed Dodd-Frank Pay-Versus-Performance Disclosure Requirements Have Finally Arrived

Husch Blackwell LLP on

On August 25, 2022, the Securities and Exchange Commission (SEC) adopted the pay-versus-performance disclosure requirements that had been in the works for years. The SEC originally proposed pay versus performance rules...more

BakerHostetler

SEC Adopts Dodd-Frank Act Pay-Versus-Performance Rules

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Key Takeaways - ..On August 25, 2022, the Securities and Exchange Commission (“SEC”) adopted final pay-versus-performance rules (the “Final Rules”) that guide the implementation of Section 953(a) of the Dodd-Frank Act,...more

Cozen O'Connor

SEC Adopts Pay Versus Performance Disclosure Rules Seven Years After Original Proposal

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On August 25, 2022, the Securities and Exchange Commission (SEC) adopted final disclosure rules implementing the pay versus performance requirement of the Dodd-Frank Act for most reporting companies. The SEC originally...more

McDermott Will & Emery

New SEC Rules Heighten Scrutiny Over Executive Pay

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On August 25, 2022, the US Securities and Exchange Commission (SEC) adopted final rules imposing new mandatory “pay for performance” disclosures for most public companies (foreign private issuers, emerging growth companies...more

Proskauer - Employee Benefits & Executive...

CEO Self-Evaluation: To Thine Own Self (Assessment) Be True

“Report cards” may bring to mind evaluating middle school students, not CEOs of multi-billion dollar companies. But over the last decade, some companies have adopted a CEO “self-assessment” for evaluating the performance of...more

Jackson Lewis P.C.

San Francisco Will Tax Employers Based On CEO Pay Ratio

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San Francisco’s Measure L, which passed with the overwhelming support of the voters, will be effective in 2022 for businesses operating in the City of San Francisco. Measure L, titled the “Overpaid Executive Gross Receipts...more

Holland & Knight LLP

Congress Expands Covered Employee Limits in Section 162(m) Through American Rescue Plan Act

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President Joe Biden on March 11, 2021, signed the American Rescue Plan Act of 2021 (ARPA), a $1.9 trillion conglomerate of COVID-19 relief, funding and tax legislation. While numerous other provisions of ARPA have received...more

Blank Rome LLP

Delaware Court Preserves McDonald’s Right to Seek Clawback of Ex-CEO’s Severance Benefits

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A recent decision by the Delaware Chancery Court in the clawback litigation between McDonald’s Corporation and its former CEO highlights the meaning and impact of a common contractual provision: the “integration clause.” Such...more

Mintz - ML Strategies

Executive Compensation Practices in Pharma – Insight into Congressional Oversight

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In an exchange which has now gone viral, freshman U.S. Representative Katie Porter (D-Calif.) questioned former Celgene CEO Mark Alles about his 2017 compensation structure last week. Rep. Porter, who is now famous for...more

A&O Shearman

18th Annual Corporate Governance & Executive Compensation Survey 2020

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In last year’s Survey, we noted that concern for environmental and social issues (the “E” and the “S” of “ESG”) had reached an inflection point, having taken center stage from the more traditional governance issues (the “G”...more

Cooley LLP

Blog: How has the pandemic affected CEO pay?

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In this new study, Equilar and the Rock Center for Corporate Governance at Stanford examine how COVID-19 has affected CEO compensation. Are boards focused more on making sure that CEOs have the right incentives to continue...more

Proskauer - Employee Benefits & Executive...

Terminating a CEO for Cause

Terminating a CEO “for cause” requires that the board of directors (“Board”) of the employer focus on two questions – What is the applicable standard for cause? Do the facts and circumstances satisfy this applicable standard?...more

Fenwick & West LLP

McDonald’s Clawback Suit Against Former CEO: A Cautionary Tale

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McDonald’s Corporation has joined a growing list of companies that have taken action to forfeit unpaid compensation or demand repayment of compensation previously paid to a former CEO, including equity awards or proceeds from...more

Vinson & Elkins LLP

My CEO Just Tested Positive, Now What?

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A growing number of public figures, including CEOs, have tested positive for COVID-19. Since the duties and responsibilities of a CEO often include being the face of the company and meeting with other executives who are, in...more

Womble Bond Dickinson

Proposed IRS 162(M) Regulations Effect Executive Compensation Arrangements

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The Internal Revenue Service (“IRS”) recently proposed Regulation 122180-18 (the “Proposed Regulations”) to implement the amendments found in the Tax Cuts and Jobs Act of 2017 (the “Act”)1 to Section 162(m) of the Internal...more

Robins Kaplan LLP

Financial Daily Dose 1.13.2020 | Top Story: Labor Dept. Issues Stricter Joint Employer Test in New Rules

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Sunday’s release of a long-awaited Labor Department final rule on joint employment spells trouble for workers hoping to “sue large companies for wrongdoing by contractors or franchisees.” The rule reverses Obama-era policies...more

Cooley LLP

Blog: How will companies and CEOs meet the challenges of corporate social responsibility?

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This PubCo post discussing the Business Roundtable’s adoption of a new Statement on the Purpose of a Corporation concluded by observing (rhetorically) that the question teed up by the new BRT Statement was what all of the...more

Cooley LLP

Blog: How does the public view executive comp?

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How many people have strong opinions about most hot topics in corporate governance— staggered boards, proxy advisory firms or dual-class share structure? In Pay for Performance… But Not Too Much Pay: The American Public’s...more

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