Headlines about "Executive benefits"

Gathered from the web by the editors at BenefitsLink.com.
SEC Reporting Trap and Setting Performance Goals
"In a series of correspondence with Verizon, the SEC took a surprising position on the Summary Compensation Table disclosure of performance-based equity awards in situations where the Compensation Committee retained authority to adjust performance-based equity awards based on non-objective criteria." (Winston & Strawn LLP)

An Introduction to International Retirement Plan Design (PDF)
"To attract and retain the right talent willing to move across borders, whether on a temporary or permanent basis, employers need to provide competitive compensation packages that include a retirement savings component. This paper details how to address retirement security for a mobile workforce." (Buck Consultants)

Institutional Shareholder Services Releases FAQs Regarding 2012 U.S. Compensation Policy
"On January 25, 2011, Institutional Shareholder Services (ISS) published a set of FAQs regarding its 2012 US compensation policy. The FAQs cover: Pay for performance; Management's say on pay responsiveness; [and] Equity plans." (Practical Law Company)

Corporate Governance: Proxy Advisory Guidelines and the Shifting Landscape of Benchmarking Executive Compensation
"Last year's introduction of say-on-pay regulations via Dodd-Frank helped to arm shareholders with the capacity to disapprove compensation policies, but the SEC's evolving compensation disclosure regulations and recent updates from proxy advisory firms' guidelines indicate that executive compensation remains a key issue." (Thomson Reuters)

Negotiating Executive Employment Agreements: Compensation and Benefits (PDF)
"The terms of an executive employment agreement, including the types of compensation and benefits included in the agreement, can have significant tax and securities consequences for the employer. In addition, under certain circumstances, the employer must publicly disclose the employment agreement, which may subject the employer to scrutiny." (Practical Law Publishing Limited and Practical Law Company, Inc. via Proskauer Rose LLP)

[Official Guidance] Second Quarter Update to the 2011? 2012 IRS Priority Guidance Plan (PDF)
"The second quarter update to the 2011-2012 plan reflects 14 additional projects that have become priorities and/or guidance we have published during the period from October 1, 2011 through December 31, 2011 of the plan year. In addition, the update reflects one project we have closed without publication because the statute was subsequently repealed." (U.S. Internal Revenue Service)

[Guidance Overview] District Court Must Order Plan Committee to Apply Correct Legal Standard to Top-Hat Plan Issue
"A district court erred when it failed to order a retirement plan committee to use the correct legal standard to determine whether the plan met ERISA's requirements for a top-hat plan, the U.S. Court of Appeals in Cincinnati . . . has ruled. The appellate court reversed the district court's ruling that, because the plan was not a top-hat plan, the employer had violated ERISA's vesting and other substantive requirements." (Wolters Kluwer Law & Business / CCH)

Lessons Learned: The Inaugural Year of Say-on-Pay (PDF)
"CalSTRS wants to reflect on what it learned during the 2011 proxy season, the first with mandatory Say-on-Pay at a majority of U.S. companies. Not only to improve our process going forward, but to help influence the market towards a better alignment between pay and performance." (California State Teachers? Retirement System)

Kodak Bankruptcy Shows the Risks of Nonqualified Deferred Compensation
"The biggest risk with a nonqualified deferred compensation plan . . . is the possibility of the company's bankruptcy. The Chapter 11 bankruptcy filing by Eastman Kodak raises questions about what will happen to the amounts deferred into its nonqualified retirement plan and what actions the company and its executives have been taking in relation to the plan during the past several years." (myStockOptions.com)

[Guidance Overview] Annual Reporting Requirements for Incentive Stock Options and Employee Stock Purchase Plans
"With respect to reporting ESPP transactions, companies are required to report the first transfer of legal title to any share purchased under an ESPP plan." (Orrick, Herrington & Sutcliffe LLP)

401(k) Plan Design Solutions for Firms with High Turnover or Disparate Compensation Levels (PDF)
"Here is how it works. If no HCEs are covered under the plan, there is no required testing of minimum coverage or nondiscrimination. As a full carve-out plan of Section 1-410(b)-2(b)(6), the minimum coverage requirements are satisfied 'if and only if the plan benefits no highly compensated employees for the plan year." (Lockton Retirement Services)

[Guidance Overview] Top-Hat Plan Test for Your ERISA Executive Deferred Compensation Plan: Daft v. Advest, Inc.
"A recent Sixth Circuit decision provides a tutorial on designing and administering an ERISA executive compensation top-hat plan." (Porter Wright Morris & Arthur LLP)

Beware of Strategies to Take Advantage of Lower Social Security Tax Rates
"If the 4.2% rate is not extended for the whole year and you receive compensation income (e.g. salary, bonus, stock compensation) in January and February that exceeds $18,350 (a sixth of the Social Security wage base of $110,100), you face some type of recapture for the 2% lower rate." (myStockOptions.com)

Pay for Performance Drives Year Two of Say on Pay, While Activists Target CEO Pay in Tax Reform
"Given the still struggling economy and that 2012 is an election year, we would expect to see a continued focus on stock options and federal contractors' pay as well as the deductibility of executive compensation used as a political foil. The Center will be advocating for consistent tax treatment among all forms of compensation." (HR Policy Association)

Shareholder Say on Director Pay?
"According to the CorpGov.net, author James McRitchie's Shareholder Say on Director Pay proposal will be on the Apple, Inc. proxy statement (please note that I could not find this on the Apple website or EDGAR, so maybe this is a gag). Is this the next step in investor micromanagement?" (Michael S. Melbinger via Winston & Strawn LLP)

[Guidance Overview] Corporate Communicator, Winter 2012 Issue, on the Upcoming Annual Report and Proxy Season (PDF)
"This issue highlights key SEC reporting and corporate governance considerations that will be important during this annual meeting season as well as in the upcoming year. In this issue, we are including our customary articles on recent SEC, NYSE/Nasdaq and general corporate law developments." (Snell & Wilmer L.L.P.)

SEC Formally Postpones Dodd-Frank Rulemaking
"SEC updated the Dodd-Frank Implementation section of its website to delay the 'planned' issuance date for the remaining rules required by the executive compensation provisions of the Act . . . ." (Michael S. Melbinger via Winston & Strawn LLP)

2012 U.S. Proxy Voting Summary Guidelines (PDF)
"ISS' Benchmark proxy voting guidelines serve as a tool to assist institutional investors in meeting their fiduciary requirements with respect to voting by promoting shareholder value creation and risk mitigation at their portfolio firms." (Institutional Shareholder Services Inc.)

Tax Benefits from Options as Windfall for Businesses
"The stock market's rebound from the financial crisis three years ago has created a potential windfall for hundreds of executives who were granted unusually large packages of stock options shortly after the market collapsed." (The New York Times; free registration required)

NYC Comptroller Weighs In on Clawbacks Controversy
"New York City Comptroller John C. Liu released a statement saying that Goldman Sachs, JPMorgan Chase and Morgan Stanley should hold their senior executives more accountable for improper behavior." (PLANSPONSOR.COM)

[Guidance Overview] ISS Issues Technical Paper on Evaluating Pay for Performance and Updated Burn Rate Tables (PDF)
"Under its Burn Rate Policy, ISS recommends against stock plan proposals if a company's three-year average burn rate exceeds its industry group's mean by more than one standard deviation or two percent of weighted common shares outstanding, if higher." (Frederic W. Cook & Co., Inc.)

Tougher Wall Street Clawbacks Needed, NYC Comptroller Says
"New York City Comptroller John C. Liu, who oversees $108 billion in pension funds, said Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley should target senior executives' pay to prevent improper or risky practices." (Businessweek)

Compensation Planning 2012: Proceed with Caution
"[B]udget levels will increase slightly over 2011 results, but remain well below pre-2008 recession levels." (Sibson Consulting)

The Next Say-on-Pay Vote May Not Be as Easy to Win as the First
"In anticipation of the 2012 say-on-pay vote, institutional investors and their advisors are refining their analytical approach, particularly around the alignment of pay with performance. Moreover, the [SEC] as required by Dodd-Frank, will further influence say-on-pay outcomes when it issues its pay-for-performance and pay-parity disclosure requirements." (Sibson Consulting)

[Guidance Overview] Institutional Shareholder Services to Release Updated Governance Risk Indicators Ratings
"[Governance Risk Indicators (GRId)] is a measure of governance-related risk designed to: Provide institutional investors with an understanding of high-level areas of concern across a portfolio, together with analytical tools to help them evaluate governance at individual companies.Provide companies with a basis for aligning their corporate governance structure and practices with shareholder interests." (Practical Law Company)

Institutional Shareholder Services' White Paper on Pay for Performance
"On December 20, 2011, Institutional Shareholder Services (ISS) published a white paper that provides more information on its new pay-for-performance methodology in advance of the 2012 proxy season." (Practical Law Company)

[Guidance Overview] Annual Bonuses for 2011 Paid in 2012: Tax Planning Opportunities for Employers
"[E]mployers need to consider the following factors when deciding when to deduct the amount of bonus payments: 1.In order to deduct in 2011 a bonus that is paid in 2012, the employer must be on the accrual method of accounting. 2.In addition, the amount of the total bonus payable needs to be fixed as of the last day of 2011." (Porter Wright Morris & Arthur LLP)

2011/2012 Compensation, Retirement and Benefits Trends Survey (PDF)
"The annual Compensation, Retirement and Benefits Trends Survey conducted by Verisight and RSM McGladrey is designed to uncover key trends across the broad spectrum of retirement, benefits, and employee reward programs.The result is a comprehensive view of firms' total employee reward programs that is rarely available from a single source." (Verisight, Inc.)

Getting Executive Compensation Ready for 2012: Starting with ISS Guidelines (PDF)
"This Client Alert addresses some of the key implications for publicly traded U.S. companies, and is followed by our article titled 'Candor for Compensation Committees' which is reproduced from the latest edition of Board Member magazine because the article highlights actions that compensation committees should be taking this winter in order to be ready for the 2012 proxy season." (Paul Hastings LLP)

2012 Resolutions for Employee Benefits and Executive Compensation
"This article identifies three key employee benefits and executive compensation items that employers should resolve to focus on in 2012: 1) Review compensation plans and practices for compliance with Section 162(m) of the IRC; 2) Plan for summaries of benefits and coverage for group health plans; and 3) Prepare to comply with DOL fee disclosure requirements." (Practical Law Company)

Companies Bolster Pay-for-Performance in Executive Comp Due to 'Say on Pay'
"Experts from consulting firm PricewaterhouseCoopers detail concrete preparations and advice for companies to reform their executive compensation practices in anticipation of what promises to be an even tougher shareholder vote in 2012." (Employee Benefit News)

[Opinion] PayScale.com's Publication of 'Pay Ratios' Masks the Complexity of Dodd-Frank Requirement
"This week, PayScale.com, an online compensation database, produced its version of the ratio between CEO and median employee pay for the Fortune 50 companies, thereby perpetuating the misperception that it will be easy for companies to comply with the Dodd-Frank pay ratio mandate." (HR Policy Association)

[Opinion] PayScale.com's Publication of 'Pay Ratios' Masks the Complexity of Dodd-Frank Requirement
"This week, PayScale.com, an online compensation database, produced its version of the ratio between CEO and median employee pay for the Fortune 50 companies, thereby perpetuating the misperception that it will be easy for companies to comply with the Dodd-Frank pay ratio mandate." (HR Policy Association)

Special COBRA Coverage Terms for the Departing Executive: Pitfalls to Avoid
"Common examples include a period of remaining on active coverage status even after employment responsibilities have largely ceased (for instance during any period in which the executive receives severance compensation), or employer payment of COBRA premiums for some period of time after termination." (E is for ERISA)

Measuring the Cost and Dilutive Impact of Aggregate Share-Based Compensation (PDF)
"This report expands on prior Fair Value Transfer ('FVT') reports in two meaningful ways. First, in addition to FVT, we examine market rates for share usage and overhang. Second, this report provides a broader perspective on FVT rates for the six year period from 2005 to 2010." (Frederic W. Cook & Co., Inc.)

[Opinion] Another Unexpected Twist in the SSOP Lawsuits
"The new twist is good news. On Monday, the judge ordered the plaintiffs' attorneys to show cause for why the court should not vacate the ruling in the Cincinnati Bell case due to sanctionable conduct by the plaintiffs' attorneys. The conduct alleged is somewhat technical, involving a fib as to the state of residence and, therefore, subject matter jurisdiction, but we will take it any." (Michael S. Melbinger via Winston & Strawn LLP)

Executive Retirement Benefits and Perquisites: The Latest Trends
The target page provides links to the Hay Group webinar presented on December 6, 2011. You can view the full presentation with audio, or the slideshow, or download documents. (Hay Group)

[Opinion] The Myth of Work-Life Balance (at the Top)
"Many companies extol the value of work-life balance for their employees, but the reality for senior executives? There isn't any." (Bloomberg L.P.)

Two Updates on Compensation Clawbacks
"First, the SEC announced that the former Chairman and CEO of CSK Auto Corporation has agreed to return $2.8 million in bonus compensation and stock profits that he received while the company was committing accounting fraud to O'Reilly Automotive, which has since acquired CSK Auto. . . . This was the SEC's first SOX clawback case against an individual who was not alleged to have otherwise violated the securities laws." (Michael S. Melbinger via Winston & Strawn LLP)

[Guidance Overview] ISS's U.S. Proxy Voting Guidelines for 2012
"[I]t is important for every public company to understand ISS's policies and how the company's practices measure up to those policies in order to take proactive steps related to anticipated or actual negative voting recommendations." (Wilson Sonsini Goodrich & Rosati)

[Guidance Overview] Equity Arrangements and Change in Control Agreements
"Young was a split decision, 2 to 1. A vigorous dissent concluded that the unambiguous terms of the plan made clear that the executive had good reason to resign in February 2009, and that the compensation committee's reading of the plan was based on an interpretation that was contrary to the plan's unambiguous terms and therefore arbitrary under New York law." (National Association of Stock Plan Professionals via Utz, Miller & Eickman, LLC)

Compliance with Anticipated SEC Rules Requiring Information on Ratio of Employee Pay to CEO Compensation Difficult and Expensive
"[T]he Securities and Exchange Commission hopes to issue proposed rules that would require publicly traded employers to calculate the ratio of median employee pay to CEO compensation." (Human Resource Executive Online)

[Guidance Overview] ISS's Updated Proxy Voting Guidelines for 2012
"U.S. Securities and Exchange Commission . . . rules require companies to provide shareholders the opportunity to vote on the frequency with which advisory say-on-pay votes will be held. ISS will recommend voting against any incumbent director on a board that implemented a say-on-pay vote less frequently than the frequency which received the greatest number shareholder votes." (McDermott Will & Emery)

[Guidance Overview] Is Employer Obligated to Pay a Pro Rata Bonus to Employees No Longer with the Company?
"Of particular interest is whether an employee who has been terminated ? voluntarily or involuntarily ? is entitled to a pro rata share of the bonus as of the date of termination. The payment of bonuses is generally governed by applicable state law." (Franczek Radelet P.C.)

[Guidance Overview] Favorable IRS Ruling on Tax Deductions for Bonus Pool Arrangements
"Many employers in the financial services industry and elsewhere create bonus pools for high-performing employees. However, the allocation of the individual bonuses is often not known prior to the end of the taxable year to which the bonus relates. The amount may not be known because, under the bonus plan, an employee has to be employed on the payment date or because the plan may give some discretion about making individual allocations." (McGuireWoods LLP)

IRS May Propose New Section 457(f) Vesting, Other Rules in Mid-2012
"No firm deadline exists, but an IRS attorney's recent statements indicate that the agency's current goal is to publish proposals by June 30, 2012." (Mercer LLC)

Nonqualified Deferred Compensation Plans: Plan Decisions and Changing Tax Conditions
"This white paper will: Look at which individuals are potentially affected by proposed tax changes; Examine four key factors that need to be considered when comparing the effect of taxes on deferred compensation versus paying taxes currently; Provide scenarios of how tax rate changes might impact NQDC plan deferrals over time." (Principal Life Insurance Company)

[Guidance Overview] ISS 2012 Updates to Proxy Voting Guidelines
"The key change in the ISS 2012 updates is that, going forward, the first time a post-IPO company presents an equity plan for Section 162(m) approval, ISS will give the plan a full equity plan evaluation." (Morgan, Lewis & Bockius LLP)

Use of Statistical Sampling in Pay Ratio Disclosures Would Be 'Extremely Difficult,' SEC Told
"Allowing employers to use statistical sampling to comply with Dodd-Frank's employee-to-CEO pay ratio disclosure rule wouldn't make the calculation much easier, according to the Center On Executive Compensation." (Mercer LLC)

[Guidance Overview] ISS 2012 Policy Updates (PDF)
"On November 17, ISS issued updates to its U.S., Canadian, European and other international voting policies for the 2012 proxy season that will apply to all publicly traded companies with shareholder meetings on or after February 1, 2012." (Frederic W. Cook & Co., Inc.)

[Guidance Overview] IRS Clarifies Application of All Events Test to an Employer's Bonus Pool Liability
"The IRS issued Rev. Rul. 2011-29 last week, which clarifies the IRS position regarding a taxpayer's ability to accrue in the year before payment its liability for bonuses under a program creating a bonus pool and resulting in a liability to a group of employees." (Miller & Chevalier Chartered)

[Guidance Overview] 2012 ISS U.S. Corporate Governance Policy Updates (PDF)
"[Shown in this alert] is a chart with highlights of changes to ISS Board and Compensation policies for the 2012 U.S. company proxy season (meetings beginning February 1, 2012)." (Holme Roberts & Owen LLP)

ISS Publishes 2012 Proxy Voting Policies
"The final version does not appear to be dramatically different from the proposed version released in October. Today, I will blog on three key issues relating to executive compensation . . . ." (Michael S. Melbinger via Winston & Strawn LLP)

IRS Rules Favorably on Timing of Tax Deductions for Some Bonus Pool Arrangements
"IRS Rev. Rul. 2011-29 outlines criteria for an accrual-basis taxpayer to deduct employee bonuses in the year that related services are performed, even though the bonuses aren't paid until early the next year." (Mercer LLC)

Most Americans Say Top Managers Make More Than They Deserve
"[S]even in 10 Americans (69%) believe most top company managers make more than they deserve in salaries and all other benefits." (PLANSPONSOR.com)

[Opinion] Short Headline Here
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