This month, the SEC proposed a new rule that would require large hedge funds and endowments to disclose how they vote on executive pay. According to a Reuters report to which Farient Advisors contributed, the changes “are meant to bring more transparency to shareholder annual meetings, partly by implementing rules mandated by the Dodd-Frank financial reforms of 2010.”
More than a decade after it was signed into law, parts of Dodd-Frank have yet to be fully enacted. Recently, Farient published a retrospective of the legislation looking at what’s worked, what hasn’t, and where we are on the two provisions – pay and performance alignment and clawbacks – that have yet to be implemented. While much of what’s currently enacted aims to increase management and the board of directors' accountability to investors, this new rule would further increase the transparency between hedge funds and their individual investors.
Speaking of governance, I hope to see you at NACD’s virtual event, Leading Minds of Governance, where I’ll be participating on a panel of leading governance experts discussing the most pressing governance issues for directors today. You can read more about it below.
Finally, please join me in congratulating Farient’s CEO, Robin Ferracone, who was once again named to the 2021 National Association of Corporate Directors (NACD) prestigious Directorship 100 list.
Sincerely,
Dan Mayfield
Resources for Board Members
Today's Tech Founders Don't Just Own the Company. They're Also Getting Huge Pay Packages.
Today’s startup founders are benefitting from a new trend: pay packages consisting of giant special stock awards. Farient’s Robin Ferracone discussed how these awards might not be a best governance practice in the Wall Street Journal.
Last year, equity compensation for named executive officers increase by 3.7% at companies in the S&P 500. Farient’s Eric Hoffman also points out that, counterintuitively, financial performance in that period declined in Agenda.
DE&I Metrics in Executive Incentives: Diagnose the Issue, Measure Performance
Farient’s Robin Ferracone writes on diagnosing DE&I issues and measuring performance for incentives in Directorship Magazine. Most businesses believe in the business case for diversity; this is how to achieve it.
SEC Issues the 'Most Meaningful' Updates to Proxy Voting Disclosure in Decades
This month, the SEC proposed a rule that would broaden the types of investors that would need to disclose their vote on executive compensation. In Agenda, Farient’s Robin Ferracone discussed how this would increase transparency.
November 5 - 50/50 Women on Boards Presents the Los Angeles Conversation on Board Diversity
Farient Advisors is sponsoring the 5050 Women on Boards Virtual Global Conversation live from Los Angeles on November 5th. Hear from CEOs, board directors, and experts who are changing corporate culture by instituting inclusive educational programs and hiring practices that welcome, attract, and advocate for diverse talent and board directors.
Join the National Association of Corporate Directors and Farient Advisors’ Dan Mayfield for a complimentary director-driven forum to exchange ideas and insights on all things governance. Participants will have the opportunity to interact with America’s boardroom experts and top governance gurus in a truly unique format.
November 17 - 50/50 Women on Boards Presents the New York Conversation on Board Diversity
Farient Advisors is sponsoring the 5050 Women on Boards Virtual Global Conversation from New York, NY on November 17th. This two-hour session, which is part of the "Global Discussion on Diversity," is included in the 30 city program, and includes VIP Panel Session followed by a one-hour Strategic Networking Session with a director coach.
Dan Mayfield is a Partner with Farient Advisors. With 20 years of experience providing advice on executive and Director compensation, he works with companies across a wide variety of industries, including industrial, retail, consumer, pharmaceutical, healthcare, and professional services firms), in various stages of development. He also works for both for-profit and tax-exempt organizations. Dan advises Boards and management on all areas pertaining to executive compensation, particularly in designing pay programs that align with business strategy and stakeholder value.
About Farient
Farient Advisors LLC is an independent executive compensation, performance, and corporate governance consultancy. Farient provides a comprehensive array of services to boards and management, including compensation program design, performance measurement and goal setting, pay and performance alignment, board of directors’ compensation, and shareholder communications, among others. Farient is located in Los Angeles, New York, Louisville, and Dallas and is a founding partner of the Global Governance and Executive Compensation Group (GECN), serving clients in more than 35 countries throughout the world. Farient is recognized by the Women’s Business Enterprise National Council as a certified diverse company.
Farient Advisors, 55 E. 59th Street, Suite 12B, New York, NY 10022
