Oil and gas executive compensation survey

In order to examine executive compensation in leading energy sector companies, Equilar, Inc., an information services firm which specializes in researching executive pay, was asked to perform a survey, in which they analyzed and compiled pay data in over 34 companies around the world.
The survey contains information about the total annual compensation, which includes base salary, cash bonus payouts, the grant-date value of stock and option awards, and other compensation, for each CEO they studied.
For companies located in the US, Equilar used the Summary Compensation Table of each firm’s annual proxy statement and the Grants of Plan-Based Awards Table. They used the director and management remuneration section for companies abroad.
Next to the total annual compensation, the survey also contains information about retirement plans and change in pay, which represents the percentage increase or decrease in total compensation from fiscal year 2007 to fiscal year 2008.
Finally the survey closes down with a ranking on total 2008 compensation.

Financial Times

Alexander

France pushes G20 to curb bank bonuses

After the G20 meeting in Pittsburgh in September, where standards were implemented on banking pay as a result of the excessive compensations in the financial sector, France said they are not satisfied about the lack of motivation some countries have regarding the need to curb bonuses. Sarkozy will discuss the issue at the follow-up G20 meeting.

The French want to apply the G20 standards before the 2009 bonuses are paid around February and March 2010. Concerns over bonuses have risen again after the news that eight U.S. Banks - which all received support from the government - have set aside around $117.6 billion for 2009 to pay their employees.

All countries must have the same rules about bankers’ pay because otherwise countries with a less strict regulation will have an competitive advantage when attracting executives. The G20 has therefore agreed to stop guaranteed bonuses and will work on its progress to apply all the standards before the bonus season.


Bernard Matthys


Cnbc

New competitive pay offers are being considered

Kenneth Feinberg, whose job is to police compensation of CEOs in companies that received help under the Troubled Asset Relief Program (popularly called the 'pay czar’), is worried that pay restrictions he ordered at bailed-out companies will affect their competitiveness. He defended his move to curb excessive pay: “I’m always concerned that the companies thrive and they keep the personnel they need to stay in business”. Feinberg also added he would love to see other companies adopt compensation plans based on their long-term profits.

One month ago, the pay and bonuses for the top 25 earners at the seven biggest bailed-out firms were reduced by 50%. Now Feinberg has mentioned that he might allow firms to hire new executives at competitive pay.

The success of the pay levels for the bailed-out firms will be measured by their repayment of taxpayer money: it's of the utmost importance that these companies are kept in business, in order that the U.S. taxpayer will get repaid.


Bernard Matthys

Reuters

Wall Street bonuses to rise 40% in 2009

A new annual report predicts that Wall Street incentives will increase by an average of 40% in 2009, one year after the beginning of the financial meltdown. This is mostly the result of near-record revenues from fixed-income, commodities and foreign exchange trading, where businesses are growing stronger. However, the employees of hedge funds, private-equity firms and prime-brokerage operations will see a decline in their remuneration by up to 30 percent because of lower return on investments.

The report showed that bonuses at financial firms are being offered more and more in the form of multi-year stock options. Despite the increase in stock options, bonuses are believed to remain below the 2007 record levels.

To prevent a repeat of the financial crisis, the Federal Reserve is working on rules to ban excessive banker pay. The Federal Reserve will monitor incentive compensation at banks that encourages excessive risk-taking.

Bernard Matthys

money.cnn.com

‘Has a new age dawned in the realm of executive compensation?’

The merge, expected in the first half of 2010, between two of the biggest power-tool makers, Black and Decker and Stanley Works, is not only in favor of the stakeholders and the two companies themselves, also former Black and Decker boss Nolan D. Archibald profits from the situation. Archibald, 66 years old, is stepping aside as president and chief executive and therefore receives a severance payment of $20.5 million. The Black and Decker board said this golden parachute was “appropriate” but Archibald turned it down. Don’t worry, Archibald will not have to struggle through life the next decades, he is staying on as executive chairman of the board of directors and will earn around $7 million during the next three years, on top of Black and Decker stock options worth an estimated $45 million and a pension worth $50 million. The fact he turns his severance payment down is understandable but nevertheless astonishing.

Nathan

Washingtonpost

Obama puts limit on executive compensation

At the beginning of 2009, the president of the United States Barack Obama, set a $500,000 annual compensation cap for executives at companies who are getting taxpayer bailouts to stop them from going bankrupt. He thinks excessive compensation is one of the main reasons of the economical crisis and in order to revive the economy, he will now lay down clear conditions about the executive compensation. Restrictions on golden parachutes and greater say to shareholders over the wages and bonuses of company chiefs are two of the main new rules.
In the short term the new regulation imposes that only companies who have received bailout money agree to stricter oversight and prove they have already applied the established rules on executive compensation. In the long term these rules will not only count for companies who receive government funds but for all public financial institution.

Nathan

Reuters

Microsoft introduces 'say on pay' - votes

Microsoft is one of the first companies to adopt say on pay provisions.
In september the software giant introduced a non-binding advisory vote on executive compensation. This vote will take place every three years, starting this year on November 19, at the company's annual meeting.

"Given the interest in executive pay, we think it makes sense to encourage more dialogue with our shareholders on our compensation approach," said Brad Smith, Microsoft general counsel.
This initiative will be followed by many other American companies, as it is part of the Troubled Asset Relief Program, which the US-government introduced last year in order to maintain the financial crisis.
Although say on pay provisions might help fixing the economy, it may not solve the underlying problem of executive over-compensation.

Alexander
Financial Times