Remuneration

IRS Limits Scope of Sec. 162(m) Deductions

Jaclyn Jaeger July 12, 2011

The IRS has proposed changes to the rules on what deductions companies can take for spending on executive compensation, which clarify the requirements for deducting performance-based pay and what types of plans qualify. "It's a potential trap for the unwary if you continue to move along and don't at least check to make sure you're in compliance," says Ben Wells, a partner with law firm Dinsmore & Shohl.

Compromised Remuneration Committees Boosting Exec Pay

Neil Baker May 31, 2011

Average chief executive pay at UK-listed companies increased by a third last year and has quadrupled over the last 12 years, despite flat share prices, according to research from proxy agency Manifest.

Norway Wants Boards to Cap Performance Pay

Global Glimpses July 08, 2010

Companies with a share listing in Norway face a cap on any performance-related part of executive pay under a proposed new version of the country’s corporate governance code.The Norwegian Corporate Governance Board, which maintains the country’s code, says the revised version will require an absolute limit to performance-related remuneration, and...

Australia Wants Target Number of Women on Boards

Global Glimpses April 29, 2010

Companies with a stock market listing in Australia would have to disclose more information about the number of women they employ and publish clear targets for getting more women into top jobs, under proposed new corporate governance rules.Companies would have to reveal how many women they employ overall, how many...

Japan Lifts Veil on Exec Pay and Shareholder Votes

Global Glimpses February 24, 2010

Companies with a listing in Japan will have to disclose more information about their corporate governance practices and how much they pay directors under plans released by the country’s Financial Services Agency (FSA).The new disclosures are aimed at giving investors more of the information they need to hold companies to...

Government Seeks New Powers for FSA

Global Glimpses November 23, 2009

Britain's Financial Services Authority will be able to take tougher action against firms and individuals that fail to comply with its rules if draft legislation proposed by the government makes in onto the statute books. The centerpiece of the new Financial Services Bill was a measure that would give the FSA...

"Say on Pay" Works, Study Claims

Global Glimpses September 23, 2009

0 false 18 pt 18 pt 0 0 false false false /* Style Definitions */table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-parent:"";mso-padding-alt:0cm 5.4pt 0cm 5.4pt;mso-para-margin:0cm;mso-para-margin-bottom:.0001pt;mso-pagination:widow-orphan;font-size:12.0pt;font-family:"Times New Roman";mso-ascii-font-family:Cambria;mso-ascii-theme-font:minor-latin;mso-fareast-font-family:"Times New Roman";mso-fareast-theme-font:minor-fareast;mso-hansi-font-family:Cambria;mso-hansi-theme-font:minor-latin;} The U.K.’s introduction of a shareholder advisory vote on executive pay might have done nothing to limit pay increases—but it has resulted in better executive pay practices,...

Regulator Fires Bonus Warning

Global Glimpses August 04, 2009

The Financial Services Authority has fired a warning shot at banks thinking of paying their executives guaranteed bonuses that run for more than a year.In a letter sent to more than 40 chief executives in the financial services sector, the head of the U.K. regulator, Hector Sants, cautioned that the...

European Commission Gets Tougher on Executive Pay

Global Glimpses April 30, 2009

The European Commission has unveiled a tougher approach to executive pay and said it will issue draft laws that will allow regulators to intervene in financial sector pay awards.The Commission’s last guidance on executive remuneration, issued in 2004, was widely ignored, but Internal Market Commissioner Charlie McCreevy insisted these two...

Investors Target Governance at Belgian Bank

Global Glimpses April 24, 2009

A group of public sector U.K. pension funds has called for a shareholder rebellion over poor governance practices at Belgian banking and life assurance group KBC. The move is part of the Local Authority Pension Fund Forum’s plan to take a tougher stance on governance issues at international companies.The forum,...

Euro Governance Forum Wants Better Pay Disclosure

Global Glimpses March 25, 2009

A new executive pay code published by a European Commission advisory body would require companies to disclose more information about directors’ pay. The move follows a growing row about levels of pay and “rewards for failure” across Europe.The European Corporate Governance Forum, which published the code, wants legislation to force...

Study: Legal, Regulatory Responses to Pay Rule Concerns

Global Glimpses March 02, 2009

With governments around the world taking action to clamp down on “excessive” executive pay, companies will find it increasingly difficult to maintain a consistent approach to remuneration policy compliance, according to law firm Clifford Chance.The firm has published a briefing note that analyzes the legal and regulatory response to concerns...

U.K. Reviews Governance at Banks

Global Glimpses February 10, 2009

The U.K. government has launched a review of corporate governance practices in the banking sector, saying this “first line of defense” had failed to hold executives to account.The review will look at board-level risk management, the effectiveness of audit committees, whether remuneration policies encourage excessive risk-taking, the levels of skill...

Governance Concerns Cause Investor Revolt at Bellway

Global Glimpses January 27, 2009

Investors in a UK-listed company have voted to reject its policy on executive pay amid concerns that it had breached corporate governance best practice.The “no” vote is the first time that shareholders have rejected a remuneration report since 2003, when investors threw out pay plans at pharmaceutical company GlaxoSmithKline.At the...

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