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The Wall Street Journal: VIDEO: What’s a Good CEO Really Worth?

How much difference does a standout chief executive make compared to a standard one? Is the marketplace for CEO pay truly competitive? Don’t miss the answers to these and other questions in an interactive video interview moderated by Wall Street Journal reporter Theo Francis.  Video Panelists Include:  Nell Minow: Director, GMI Ratings; Jim Barrall: Partner, […]

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Governance Insight Alert: NOVN and 19 other companies

Shareholders showed lingering discontent over pay practices at Novartis AG last week, giving only tepid support for the board and remuneration policies at the company’s AGM on 25 February. Novartis is one of the first high-profile companies to face a shareholder vote since the November ratification of legislation under the Minder Initiative, which mandates binding […]

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Governance Insight Alert: Alliance Data Systems and 20 other companies

On February 20, Alliance Data Systems Corporation (NYSE: ADS) disclosed new long-term equity incentive awards for its executives, including about $5.2 million granted to CEO Edward Heffernan. The award by itself is not notable, since the vast majority of incentive awards are granted during the first fiscal quarter. However, few companies choose to disclose these […]

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Governance Insight Alert: Apple and 20 other companies

The withdrawal of Carl Icahn’s shareholder proposal for an accelerated buyback program at Apple has placed shareholder activism in the spotlight this week. Icahn, who had recently increased his Apple stake by $500 million to over $4 billion, withdrew his proposal following Apple’s disclosure of “opportunistic” and “aggressive” share repurchases to the tune of $14 […]

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Governance Insight Alert: OMC and 19 other companies

On January 21, 2014, Omnicom Group Inc. (OMC) filed suit in the U.S. District Court to exclude a confidential-voting shareholder proposal from its 2014 proxy ballot. The target of the suit: John Chevedden, an active filer of governance-related shareholder resolutions for well over a decade. This is the third lawsuit filed by an issuer against […]

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Governance Insight Alert: YHOO, STAN and 19 other companies

Eyes certainly popped as they counted the digits of Henrique de Castro’s walkaway benefits following his dismissal from Yahoo (YHOO) last week. De Castro had been lured from Google to serve as YHOO’s COO just 14 months before, with an inducement award then valued at $40 million. He walks away with about $3 million in […]

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GMI Ratings’ 2013 CEO Pay Survey Reveals CEO Pay is Still on the Rise

Each of the Top Ten Highest Paid CEOs Earned Over $100 Million  New York, Oct 22, 2013 – GMI Ratings today released its 2013 CEO Pay Survey, one of the most comprehensive surveys of North American CEO compensation. The report findings are based on an analysis of 2,259 North American publicly traded companies and includes […]

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GMI Ratings’ 2013 CEO Pay Survey

GMI Ratings’ 2013 CEO Pay Survey, among the largest surveys of CEO compensation in North America, is based on analysis of North American publicly traded companies. The survey considers 2,259 CEOs whose tenure spanned the whole of the last two years in order to determine changes in executive compensation from 2011 to 2012. Download the […]

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A Sirius Lesson in Poor Pay Practices

By Scott Patterson, Compensation Analyst Manager In anticipation of GMI Ratings 2013 CEO Pay Survey scheduled for release on October 22, today’s report details how Mel Karmazin CEO of Sirius made more than $255M in Total Realized Compensation in 2012. Next week’s full report will feature an analysis in CEO Pay Changes for the Russell […]

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Update on McKesson

McKesson Corporation made headlines on June 21, 2013 upon the release of its annual proxy statement.  According to the filing, CEO John Hammergren would have been due a pension of $159 million had he retired from the company on March 31, 2013. Mr. Hammergren’s pension, more than double the next largest pension amount in the […]

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Twenty-One U.S. CEOs with Golden Parachutes of More Than $100 Million (Jan. 2012)

Last year, GMI Ratings released this report identifying the largest severance packages paid to CEOs since 2000. In total, the 21 CEOs included in the report had received severance pay of almost $4 billion in “walk-away” packages each in excess of $100 million. The report identifies stock and option awards, pensions and other deferred compensation […]

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Realized pay realizable pay grant date value pay and now… performance-adjusted compensation

By Paul Hodgson, Chief Research Analyst A recent white paper from compensation consultancy Farient Advisors brings a new approach to valuing executive compensation. It premises three main concerns about the existing alternative approaches to  putting a number to compensation – realized pay (the GMI Ratings approach which includes vested stock and exercised stock options) and […]

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It is time for real bank clawbacks

By Paul Hodgson – Chief Research Analyst An edited version of this op-ed appeared on Bloomberg View on October 3, 2012 and this version appeared today on my blog on Forbes.com It was announced in the FT today that the Financial Services Authority expects banks to reduce or clawback bonuses in British banks and non-U.K. […]

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Executive Pay Out of Alignment at Abbott Laboratories

By Jeffrey Gramlich – L.L. Bean/Lee Surace Professor of Accounting, at the University of Southern Maine This is a summary of a presentation given by Jeffrey Gramlich, L.L. Bean/Lee Surace Professor of Accounting, at the University of Southern Maine, made on behalf of GMI Ratings at the recent Leet Symposium at the Case Western Law School […]

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£7MM Pay-off for News Corp’s Rebekah Brooks

By Paul Hodgson – Chief Research Analyst Yesterday the Financial Times wrote that the former CEO of News International, Rupert Murdoch’s U.K. newspapers business, Rebekah Brooks received a golden parachute of more than £7 million on her resignation. The paper describes the payments as comprising cash, pension payments, an allowance for legal fees and the […]

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Citigroup loses top two executives, including CEO Pandit

By Paul Hodgson – Chief Research Analyst Citigroup announced the resignation of CEO Vikram Pandit this morning. The website release said: Given the progress we have made in the last few years, I have concluded that now is the right time for someone else to take the helm at Citigroup. However, the proximity of the […]

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Deutsche Bank Director in Favor of Pay Caps

By Paul Hodgson – Chief Research Analyst With more news on Deutsche executive remuneration, following on from last week’s rejig of pay, the Financial Times reports that Werner Wenning, the former CEO of Bayer, who is on the Deutsche Bank board of directors is a supporter of pay limits. According to the FT, Herr Wenning said in an interview […]

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Correction: Universal Detection Technology and the Billions of Shares

By Paul Hodgson – Chief Research Analyst We published, two weeks ago, a story detailing a windfall to the CEO of Universal Detection Technology and other employees and directors which was based on incorrect assumptions and analysis. In putting together the story, in order to determine what happened to the stock price subsequent to the […]

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Another UK CEO Falls Victim to Say on Pay?

By Paul Hodgson – Chief Research Analyst Darty plc’s CEO, Thierry Falque-Pierrotin, will leave by “mutual consent” in December 2012. The press release announcing this makes no mention of the fact that the firm is facing a shareholder revolt over a payment to the CEO, originally made in 2009 when he joined Darty, then known as […]

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Deutsche Bank Bonuses Deferred for Five Years

By Paul Hodgson – Chief Research Analyst In a statement yesterday from Deutsche Bank’s co-chairmen Jurgen Fitschen and Anshu Jain, it was announced that significant changes were going to be made to the bank’s business model, strategy and compensation practices. Most significantly from a governance standpoint, bonuses at the bank will be reduced and instead […]

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