Just Released, New Edition Expect updates and new chapters on executive pay disclosure and risk issues. Plus, the international coverage was expanded with practices in Australia, Brazil, Canada, China, Italy, Germany and the U.K.
The entire discussion of stock options has changed in just the past few years. Now that stock options are being required to be charged to earnings, companies are being more thoughtful than ever in their use and administration. This update of the 2005 publication addresses the issues involved, and seeks to explain many of the core aspects of stock plan administration. HR professionals and stock plan administrators interested in learning more about equity plan administration will find this book extremely valuable.
When a company decides to offer equity compensation to its employees, what is it hoping to accomplish? How does it want to affect behavior? Is motivation the primary concern, or is it attraction and retention? And what about the implications for organizations in terms of accounting and tax consequences?
All businesses, public and private alike, feel pressure — whether from the media, regulatory agencies, shareholders or those concerned about internal pay equity — to ensure that executive compensation programs are responsible and defensible. Unfortunately, many companies miss the opportunity to scrutinize executive pay and shore up its connection to business strategy.
Growing public scrutiny of executive compensation means that for many companies, it's a matter of when - not if - they will be required to defend the design and administration of executive compensation programs. Executive pay is critical to building and sustaining motivation and commitment, as well as ensuring the required talent is available and focused in the right direction. Directors, executives and HR leaders must be able to tell a compelling story about the thinking behind decisions and outcomes, supported by evidence of a solid, far-reaching framework underlying the full complement of pay elements.
In 2006, the Securities and Exchange Commission significantly amended proxy disclosure rules to provide investors with a clearer and more complete picture of executive and director compensation than had existed under prior disclosure rules. "Handbook for Reading and Preparing Proxy Statements, 4th edition," (formerly "Reading & Preparing Proxy Statements: A Guide to the SEC Disclosure Rules for Executive and Director Compensation") covers compensation policies and practices as they relate to risk management; the SEC's interpretive guidance on the executive and director compensation disclosure rules through the summer of 2011; the disclosure enhancements adopted by the SEC in 2009 and again in 2010.
In the past three years, Corporate America has been under siege as never before. Since 2008, we have witnessed one of the most difficult economic times ever. Unemployment hit an all-time high; the federal deficit reached more than $14 trillion; many countries have been in disarray due to debt; and pessimism about the future has never been higher among employees.
Would your executive compensation plan hold up to today's unprecedented media and regulatory scrutiny? You'll be in a better position to answer "yes" after consulting this definitive list of more than 200 questions, developed by the world's largest association of compensation professionals.