Insights, Strategies, and Implications for Companies and Investors.
Companies and investors now have one year of experience with the SEC’s new pay versus performance (PvP) disclosure rules. Companies put tremendous effort into preparing these new disclosures which require companies to report a new compensation measure – Compensation Actually Paid (AP) – that reflects the year-end value of unvested equity grants. Companies reported a three-year history of CAP in 2023 but need to report a four-year history in 2024 and a five-year history in 2025 and later years. To help investors understand how pay is related to performance, companies have to report their own cumulative TSR for each year, cumulative industry TSR for each year, their own net income, and the most important financial measure (after TSR and net income) for determining CAP.
In the first year, companies struggled to find the best way to tell their story about this complex disclosure. Investors and proxy advisors also struggled to understand the new disclosures and relate them to their proxy voting decisions and recommendations.
Join us in this CLE Webcast as The Knowledge Group presents two compensation experts to help companies and investors understand the new disclosures and how they can be used to assess company incentives, alignment with relative performance, and compensation cost.
Live and Recorded CLE & CPE Webcasts in the Legal, Tax, Finance, Risk, Compliance and Human Resources Industries
Founded in November 2006, The Knowledge Group has established itself as a premier eLearning hub for Continuing Legal Education (CLE), Continuing Professional Education (CPE), and technology-focused webcasts. We equip lawyers, accountants, and industry professionals with expert-driven insights, timely regulatory updates, and practical strategies to help them stay ahead in an ever-evolving landscape.
Partner at Infinite Equity
Terry Adamson is a Partner with Infinite Equity. In his role, Terry has advised thousands of public and private companies with regard to equity design, valuation, accounting under ASC Topic 718, and share management. Terry was formerly on the FASB Round Table on Employee Share Options, and on the Executive Advisory Committee of the NASPP. Terry currently serves on the Advisory Board of the CEP and is the Chairperson of the Society of Actuaries taskforce on stock option valuation. Terry is a frequent author and speaker regarding equity compensation and is known as one of the premiere experts on Performance Share programs, specifically Relative TSR plans. Specialties: Valuation of employee equity; share management calculations; pay for performance testing; valuation of liabilities attributed to change in control due to IRC 280G; CEO Pay Ratio; development of underwater option exchange programs; and the design of employee equity programs.
President, Leading Consultant on Compensation, Performance Measurement, and Valuation Issues at Shareholder Value Advisors Inc.
Stephen F. O’Byrne is President and co-founder of Shareholder Value Advisors Inc., a consulting firm that helps companies increase shareholder value through better performance measurement, incentive compensation and valuation analysis. His work on measuring the strength and cost-efficiency of top management incentives has been published in the Harvard Business Review, the Journal of Investing, Conference Board Director Notes, the Journal of Applied Corporate Finance and the WorldatWork Journal. He is the co-author, with Professor David Young of INSEAD, of EVA and Value-Based Management. He was previously head of the compensation consulting practice at Stern Stewart & Co. and a Principal in the executive compensation practice at Towers Perrin.
