On February 9th, 2015 SEC Commissioner Luis A. Aguilar released proposed amendments to Section 955 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Issue # 1: Can transparency align equity ownership and shareholder interests? The amendments introduce a new section – 14(j) – which would enhance transparency by including disclosures that indicate whether employees and members of the board of directors are permitted to engage in transactions to hedge or offset any decrease in the market value of securities granted by their company as compensation – or held directly or indirectly. Such disclosures would allow investors to fairly evaluate if employees and directors may, or may not, mitigate or circumvent alignment … Continue reading #CorpGov #CEO #CFO #Proxy Alert: SEC Proposes Dodd-Frank Amendments to Create #AlignedValue in Equity Ownership
I found Emilie Feldman’s research intriguing. She suggests that Director incentives might only be effective when combined with “expertise”. Emilie labeled non-expert outside directors “significant ownership, low expertise” (a/k/a “SOLE”), and uses the following criteria to define SOLE directors: 1. Not the founder of a FORTUNE 500 company 2. Not the current or retired CEO or chairman of a Fortune 500 company 3. Not a director of more than one Fortune 500 company 4. Owns shareholdings of at least 0.1% My conclusions: 1. There is no question in my mind that expertise as a CEO, Chairman, and service on multiple Boards is a … Continue reading #AlignedValue: Is there #NoSubstitute for expertise on FORTUNE 500 boards?
HR Matters is @TowersWatson’s bimonthly digital publication providing practical advice, analytical insight, and case studies for solving high-priority business issues. Business Issues Covered in the Feb 2015 Edition Recruiting is booming: Is it time to recalibrate your talent management strategy? What to consider when shareholder perceptions conflict with CEO value How to create an employee value proposition for a multi-generational workforce Measuring cultural differentiators: What is your workforce thinking, but not saying? Change leadership programs are the secret weapon of high-performing organizations Do compensation systems need to be restructured for today’s norms? Audiences Business leaders of multinational companies Business … Continue reading @TowersWatson #HR Matters Feb 2015 is out // Build #AlignedValue with talent, culture, and rewards