“They never make those statements to the upside. When external events lead to windfalls or high pay, you don’t see companies adjusting for that,” said Rosanna Landis-Weaver, a corporate governance and compensation expert with As You Sow, a leading shareholder advocacy nonprofit. “They generally only ever make adjustments in one direction.” Read More →
Read MoreCompensation linked to stock is meant to align the interests of executives with that of shareholders and companies note that stock and option awards are “at risk.” Some of them may be since the direction of the stock price determines the payout. But they are granted with an estimated value – what shows up in the proxy pay table. For much of the last decade, due to an extended bull market, that estimate has ended up being too low compared with where the stock is trading when the grants are ultimately cashed in, says Rosanna Landis-Weaver, program manager at shareholder advocacy group As You Sow. Read More →
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