Executive Compensation Podcast: Conversations on Executive Pay & Compensation Committee Governance Meridian Compensation Partners

On today’s episode, we’re joined by Darren Moskovitz, Partner at Meridian Compensation Partners, LLC.

Darren dives into the critical aspects of executive compensation arrangements, especially focusing on the implications of executive departures, severance practices and the recent Federal Trade Commission (FTC) rulings on non-compete restrictions.



Key Takeaways:



(00:20) The importance of considering annual and long-term incentives during executive departures.

(01:04) Overview of typical severance approaches: general severance vs. change-in-control severance.

(03:35) Understanding the commercial and reputational reasons for severance plans.

(06:00) Historical context and evolution of severance practices since the 1980s.

(08:00) Differentiation between general severance and change-in-control severance benefits.

(09:20) The impact of FTC’s new rulings on non-compete provisions.

(13:19) Potential changes in executive compensation programs due to new FTC regulations.

(20:30) Exploring the concept of garden leave as a potential alternative to non-compete agreements.

(24:42) How non-solicitation and confidentiality agreements might be affected by FTC changes.

(27:03) Immediate steps companies should consider in response to potential FTC regulations.



Resources mentioned:


Darren Moskovitz -
https://www.linkedin.com/in/darren-moskovitz-00b42b/

Meridian Compensation Partners, LLC -
https://www.meridiancp.com/









This episode is brought to you by Meridian Compensation Partners, LLC. Learn more by visiting MeridianCP.com.

 







#Compensation #Wages #SPAC #Equity #ExecutiveCompensation #Clawback

On today’s episode, we’re joined by
Michael Brittian, Partner at Meridian Compensation Partners, LLC. Michael explores the nuanced world of special one-time equity awards, offering insights into when and why these can be pivotal for executive compensation strategies, especially during leadership transitions or significant company achievements.



Key Takeaways:



(01:33) Michael outlines the typical components of executive compensation packages.

(05:11) Common scenarios where special compensation awards are beneficial.

(07:06) The benefits of accomplishing goals using the existing compensation plan over instituting special equity awards.

(09:39) Principles for designing effective and justified special awards.

(11:58) The importance of aligning special awards with company goals and shareholder expectations.

(16:28) Discussion on setting realistic and strategic performance goals for special awards.

(19:54) Special awards should not be a replacement for solid compensation structure.



Resources Mentioned:



Michael Britton -
https://www.linkedin.com/in/michael-brittian-4896201/

Meridian Compensation Partners, LLC -
https://www.meridiancp.com/





This episode is brought to you by Meridian Compensation Partners, LLC. Learn more by visiting MeridianCP.com.





#Compensation #Wages #SPAC #Equity #ExecutiveCompensation #Clawback

On today’s episode, we’re joined by Andrew McElheran, Partner at Meridian Compensation Partners, LLC.

Andrew dives deep into the complexities of establishing resilient executive compensation frameworks amid the uncertainties of the global economic landscape.

Key Takeaways:

(01:33) Managing a corporation involves addressing classic business challenges and creating effective compensation arrangements in uncertain times.

(02:19) Resilient compensation designs are those that stand the test of time and do not require frequent revisions.

(03:46) A balance between market-aligned compensation plans and business objectives is crucial for resilient design.

(05:00) Simplicity in compensation design can lead to resilience, but it must also align with other business goals like shareholder alignment.

(06:07) The resilience of compensation plans can vary based on a company’s pay philosophy and its comfort with using discretion in performance assessment.

(09:20) Incorporating flexibility and discretion in executive compensation plans can add resilience, reflecting the need to adapt to unpredictable circumstances.

(11:21) Setting goals that balance ambition with achievable targets can enhance the resilience of compensation programs.

(13:44) Testing the resilience of compensation frameworks can help ensure they are robust enough to withstand future challenges.

This episode is brought to you by Meridian Compensation Partners, LLC. Learn more by visiting MeridianCP.com.

 

#Compensation #Wages #SPAC #Equity #ExecutiveCompensation #Clawback

On today’s episode, we’re joined by Jared Berman, Partner at Meridian Compensation Partners, LLC. 

Jared discusses the nuances of executive compensation governance, including the appropriate roles of the compensation committee, management team and advisors in the oversight process.



Key Takeaways:



(01:27) Governance involves defining the roles of the compensation committee, management and advisors in overseeing executive pay.

(02:28) Compensation committees typically meet four to five times annually.

(03:54) Clearly defining the committee’s charter and scope is crucial to avoiding ambiguity over decision-making authority.

(06:43) While management should drive incentive plan design aligned with business strategy, the board ultimately approves proposals in shareholders’ interests.

(13:09) Since COVID, incorporating strategic and non-financial priorities in incentive plans has become a growing trend.

(19:46) Advisors should share candid perspectives based on new information to foster thoughtful committee dialogue.



Resources Mentioned:



Jared Berman - https://www.linkedin.com/in/jared-berman-3950884/
Meridian Compensation Partners, LLC - https://www.linkedin.com/company/meridian-compensation-partners-llc/







This episode is brought to you by Meridian Compensation Partners, LLC. Learn more by visiting MeridianCP.com.

 





#Compensation #Wages #SPAC #Equity #ExecutiveCompensation #Clawback

On today’s episode, we’re joined by Jamie McGough, Partner at Meridian Compensation Partners, LLC.

Jamie discusses strategies for evaluating the alignment between executive pay and company performance.

Key Takeaways:

(01:15) Total shareholder return is essential, plus profitability and other financial metrics relevant to the company.

(05:30) Treatment of performance plans requires judgment when analyzing pay.

(08:40) Overlapping cycles and grant timing complicate pay-performance analysis. No perfect solution exists.

(13:02) The CEO is central to focus on.

(17:41) Pay versus performance analysis is fundamentally a governance tool for committees.

(20:22) SEC disclosure rules focus on individuals and accounting values rather than pay structures.

Resources Mentioned:




Jamie McGough -
https://www.linkedin.com/in/jamie-mcgough-2007a9a/

Meridian Compensation Partners, LLC - https://www.meridiancp.com/









This episode is brought to you by Meridian Compensation Partners, LLC. Learn more by visiting MeridianCP.com.

 









#Compensation #Wages #SPAC #Equity #ExecutiveCompensation #Clawback

On today’s episode, we’re joined by George Paulin and Gerard Leider, both partners at Meridian Compensation Partners, LLC. George and Gerard discuss executive compensation and annual incentive plan design.



Key Takeaways:



(02:33) Typical annual incentive plans use financial metrics tied to business goals and strategy.

(04:13) The most common financial metrics are profits, returns or cash flow.

(08:23) Companies are moving away from formulaic threshold-to-maximum goal ranges.

(11:18) Macroeconomics creates uncertainty in annual planning and goal setting.

(15:16) Realistic goal setting is crucial, especially in down years.

(19:59) Find the balance between performance risk and leverage in payout curves.

(20:42) Set motivational yet achievable goals.



Resources Mentioned:




George Paulin -
https://www.linkedin.com/in/george-paulin-2b9b5111/

Gerard Leider -
https://www.linkedin.com/in/gerard-leider-7348501/

Meridian Compensation Partners, LLC -
https://www.meridiancp.com/







This episode is brought to you by Meridian Compensation Partners, LLC. Learn more by visiting MeridianCP.com.

 







#Compensation #Wages #SPAC #Equity #ExecutiveCompensation #Clawback