Calendar of Upcoming Events for the ORANGE COUNTY Chapter

Prior Events

Date and Time:5/5/2016 11:30
Event:OC NASPP Lunch, Learn and Network event
Topic:Preparing for Dodd-Frank Disclosure Compliance
Location:Merrill Lynch, Pierce, Fenner & Smith Incorporated 4695 MacArthur Court, Suite 1600 Newport Beach, CA 92660 Check in on the 16th floor for parking validation.
Contact:Christina Purvis
Contact Phone:562-673-9213

This presentation will focus on the new pay-for-performance disclosures that focus on TSR and cover some of the potential disclosure issues raised.  For example, company that use internal metrics, such as EPS or EBITDA growth, when the company’s new SEC disclosures will be focused on TSR may face challenges in preparing the new disclosures. 

The presentation will also discuss how to navigate around the hurdles in complying with the new pay-ratio rule.

Today, there is no greater debate in executive compensation circles than that about the merits of relative total shareholder return (TSR) as an incentive plan metric. On one side, proxy advisors and governance groups have championed relative TSR as a metric that—in theory—ensures executives are only rewarded when shareholders experience above market returns. On the other, a host of critics note a number of challenges that—in practice—make relative TSR a difficult metric to use.

One thing is clear, though: the use of relative TSR has exploded in recent years. This shift in practice has been, in part, a reaction to Say on Pay and the attendant rise in proxy advisor influence. Although the trend to relative TSR has been driven by these external factors, that doesn’t mean there cannot be a meaningful and effective role for relative TSR plans. To do so, there simply needs to be clarity as to why relative TSR is being adopted and how it is being used. We examine the objectives that can be best served by relative TSR plans, and where relative TSR plans tend to be most/ least effective. We also examine how companies can tailor their relative TSR plan to most effectively meet the stated objective. There is no “one-size-fits-all” approach yet many companies sub-optimize by simply “following the pack.” We’ll outline four design features that can be modified to impact the risk orientation of the plan in support of the stated objective.

More Information:
Continuing Education Credits: 1 CEP (Securities Law)