Coinciding with Harvey Pitt’s inaugural CW column last week on executive pay, compensation firm Equilar conducted an analysis of performance metrics used to determine annual bonuses at S&P 100 companies. Among the top findings: Earnings per share and revenue were the top metrics used in determining CEO bonuses for 2002. According to Equilar, approximately two-thirds […]
Compliance Week
Posted inAccounting & Auditing
Companies Content With Auditors; Uneasy With Industry
DETAILS Download The Study On Public Company Views Of Auditors Download The Original Study On Accounting Firm Consolidation As a follow-up to its August study on auditor consolidation, the GAO last week published a report that looked at large public company views on audit fees, quality and choice. The report found “high levels of satisfaction” […]
Posted inBoards & Shareholders
Variations In Ways Companies Prompting Shareholder-Board Communications
An Aug. 6 SEC proposal would require disclosure of shareholder procedures for communicating with directors, and new rules effective back in April require audit committees to establish procedures for the receipt and treatment of complaints regarding accounting and auditing matters. These new “communications disclosure” requirements prompted to us look at the practices and wording being […]
Posted inFrom the Archive
AFSCME Survey: Views Of Corporate Governance
Survey conducted by Harris Interactive claims 80 percent of investors “want the right to offer investor-nominated board candidates through the proxy ballot.”
Posted inFrom the Archive
Top Five Compensation Policy Changes
TOP FIVE Top five compensation policy changes in 2002/2003: 23% Altered long-term incen-tive plan (LTIP) structure 11% Modified metrics for long-term/short-term incentives 9% Introduced exec. stock ownership requirements 6% Created holding period after exercising options 6% Granted exec(s) special one-time retention award View “Trends in Compen-sation Policies & Practices” SOURCE: Equilar An analysis of compensation […]
Posted inInternal Controls
View Of Policies, Concerns, Changes At Public Companies
A recent survey of 300 public company CFOs by internal audit and risk consulting firm Protiviti provides some interesting insights into the changes happening at U.S. public companies after Sarbanes-Oxley. According to the survey, 34 percent of responding CFOs considered the Act’s internal control and executive certification requirements (Sections 404 and 302, respectively) the most […]
Posted inBoards & Shareholders
Pension Fund Officials To Launch Governance Group
New York State Comptroller Alan Hevesi recently announced that he would join hands with officials at four other U.S. state pension funds to launch a governance caucus called the National Coalition for Corporate Reform. Hevesi’s announcement, made at the Council of Institutional Investors annual meeting in San Diego, claimed that a number of officials had […]
Posted inAccounting & Auditing
Accounting Firm Drops Some Internal Control Services
Grant Thornton LLP, the nation’s fifth largest accounting firm, recently announced that it would refrain from providing a number of internal control services to public audit clients. According to Grant Thornton CEO Ed Nusbaum, the move reflects a “principles- versus rules-based approach to accounting” that is in keeping with the intent of Sarbanes-Oxley. “There are […]
Posted inBoards & Shareholders
Governance Reform Latest Settlement Bargaining Chip?
EXAMPLES MCI: Unanimously adopted 78 recommendations by Corporate Monitor Breeden. Siebel: Will add director, limit director pay, expand comm-ittees to settle with TRS-LA. Homestore: Settled suit with pay; will also limit director terms, options, more. Hanover Comp: Settled suit with stock, new independent directors, auditor rotation. Sprint: Settled suit with cash, new board standards, comp. […]
Posted inFrom the Archive
MCI Monitor Orders Major Governance Changes
On Aug. 26, Richard C. Breeden, the former SEC Chairman appointed as Corporate Monitor for MCI, filed a report in U.S. District Court that recommended sweeping changes in the firm’s corporate governance practices. DETAILS Download The Report Download The Entire Breeden Document, “Restoring Trust” Commentary Corporate Governance on Steroids, From Mike O’Sullivan At Munger, Tolles […]
