This Comp & Gov Spotlight focuses on Farient Advisors' new report, Seven Lessons From Engaged Investors.
Not rendering correctly? View this email as a web page here.
How Companies Cope with a Changing Investor Ecosystem
Dear Friend,
The rise of index investing, where passive investors are now active owners, has been a game changer across global markets. Investors are making more demands from their portfolio companies and looking carefully at the long-term sustainability of their investments.
This month’s Comp & Gov Spotlight focuses on the 2019 Farient/Global Governance and Executive Compensation Group (GECN Group) Global Trends in Corporate Governance report, which highlights how investors and stakeholders are challenging corporations to look beyond shareholder value and “do the right thing.” The report also recommends concrete actions boards and managers can take to improve engagement with investors in this evolving ecosystem.
We invite you to anticipate investor concerns and prepare your board by reviewing our 2019 research and related stories below.
Sincerely,
Robin Ferracone
Hot Off The Press From Farient
Seven Lessons From Engaged Investors
Corporate boards and executives need to focus on the issues that are most critical to shareholders, with climate change, human capital management and executive compensation topping the list as the most critical. This research explores what investors expect from their portfolio companies– and what corporates can do to improve investor engagement on key issues.
WeWork Employee Options Underwater as Ex-CEO Reaps
As criticism mounts over SoftBank’s $1.7 billion payout to WeWork founder Adam Neumann, it’s important to understand why buyouts of startup firms often include such payments out of a need to encourage founders to agree to let go, as I explain in this Wall Street Journal article.
Though remaining static is not an option amid increased investor pressure, boards must know both when – and how – to change their compensation strategies to avoid unnecessary disruption. In this article, I delve into the proper characteristics of “Transformation Pay Plans” to better inform boards on strategies for continuous but consistent change.
Why is executive compensation so high? As I say in this CNN Business article, much of the reason has to do with what other companies are paying their own chief executives. To stay ahead of competitors, boards need to make compensation competitive. But this sometimes creates conflict with shareholders.
Robin is our Founder and Chief Executive Officer. She is the author of the book entitled, “Fair Pay Fair Play: Aligning Executive Performance and Pay” and is a frequent presenter for well-known organizations including Council of Institutional Investors, Society for Corporate Secretaries and Governance Professionals, the National Association of Corporate Directors (NACD), and The Conference Board, among others. Robin has written extensively on the topics of performance management, incentive plan design, goal setting, and corporate governance. She has been quoted by several business and industry publications including, The New York Times, The Wall Street Journal, and The Washington Post. Learn more about Robin.
Farient Advisors LLC is an independent executive compensation, performance, and corporate governance consultancy. Farient provides a comprehensive array of services to boards of directors and management including: compensation program design, goal setting and performance measurement, pay and performance alignment, board of directors compensation, and shareholder communication among others. Farient has offices in Los Angeles and New York and covers clients in more than 30 countries through our partnership in the Global Governance Executive Compensation Group (GECN).
New York: 654 Madison Avenue Suite 1209 New York NY
Los Angeles: 201 South Lake Avenue Suite 804 Pasadena, CA 91101
You received this email because you are subscribed to Comp & Gov SpotlightfromFarient Advisors.
Update youremail preferences to choose the types of emails you receive.
The rise of index investing, where passive investors are now active owners, has been a game changer across global markets. Investors are making more demands from their portfolio companies and looking carefully at the long-term sustainability of their investments.
