{"product_id":"executive-compensation-best-practices-isbn-9780470223796","title":"Executive Compensation Best Practices","description":"\u003ci\u003eExecutive Compensation Best Practices\u003c\/i\u003e demystifies the topic of executive compensation, with a hands-on guide providing comprehensive compensation guidance for all members of the board. Essential reading for board members, CEOs, and senior human resources leaders from companies of every size, this book is the most authoritative reference on executive compensation. \u003cp\u003ePreface xi\u003c\/p\u003e \u003cp\u003eAcknowledgments xvii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1 Introduction 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eShould the CEO be Rewarded or Punished for Events Beyond the CEO’s Control? 1\u003c\/p\u003e \u003cp\u003eWarren E. Buffett on Executive Compensation 3\u003c\/p\u003e \u003cp\u003eCEO Compensation Theories 4\u003c\/p\u003e \u003cp\u003eCEO Forced Exit Packages 6\u003c\/p\u003e \u003cp\u003ePrivate Equity Compensation 8\u003c\/p\u003e \u003cp\u003eEntertainment and Sports Celebrities 8\u003c\/p\u003e \u003cp\u003eBenefits of Good Corporate Governance 9\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2 Motivating Executive Performance 13\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTying Performance to the Strategic Plan 15\u003c\/p\u003e \u003cp\u003eUnintended Consequences 16\u003c\/p\u003e \u003cp\u003eFirm Expansion and CEO Pay 19\u003c\/p\u003e \u003cp\u003eEquity-Based Compensation 20\u003c\/p\u003e \u003cp\u003eA New Role for CEOs 21\u003c\/p\u003e \u003cp\u003eSatisfying Investor Expectations 22\u003c\/p\u003e \u003cp\u003eMinimum Equity Ownership Requirements 23\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3 Peer Groups and Benchmarking 25\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAdjusting the Peer Group 28\u003c\/p\u003e \u003cp\u003ePeer Groups for Different Levels of Executives 30\u003c\/p\u003e \u003cp\u003eBenchmarking 31\u003c\/p\u003e \u003cp\u003eLake Wobegon Effect 33\u003c\/p\u003e \u003cp\u003eBenchmarking with Medians 34\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4 Competing With Private Equity Funds 35\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5 Explaining Executive Compensation to Shareholders 43\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 43\u003c\/p\u003e \u003cp\u003eReconstructing Executive Compensation Disclosure for Shareholders 50\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6 Compensation Committee Ordinary Operations 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSEC Action Against Tyson Foods 62\u003c\/p\u003e \u003cp\u003eEarnings on Deferred Compensation 64\u003c\/p\u003e \u003cp\u003ePractical Steps for Compensation Committees 65\u003c\/p\u003e \u003cp\u003eCompensation Committees of Non-Profit Organizations 67\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 7 Negotiating Executive Employment and Severance Agreements 71\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNegotiating with New CEO Candidates 71\u003c\/p\u003e \u003cp\u003eNegotiating with Existing CEOs 76\u003c\/p\u003e \u003cp\u003eBest Practices Applicable to New and Existing CEOs 77\u003c\/p\u003e \u003cp\u003eCouncil of Institutional Investors 78\u003c\/p\u003e \u003cp\u003eGross-Up Clauses 89\u003c\/p\u003e \u003cp\u003eRetirement Arrangements 94\u003c\/p\u003e \u003cp\u003eThe Grasso Case 95\u003c\/p\u003e \u003cp\u003eSection 409A of the Internal Revenue Code 96\u003c\/p\u003e \u003cp\u003eOther Best Practices in Negotiating Employment or Severance Agreements 96\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 8 Compensation Committee Structure and Process 99\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCreating Incentives for Good Corporate Governance 108\u003c\/p\u003e \u003cp\u003eDisney Litigation 110\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 9 Equity Incentive Choices 113\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOverview of Equity Incentives for Key Employees 113\u003c\/p\u003e \u003cp\u003eDilution 114\u003c\/p\u003e \u003cp\u003eStock Option versus Stock Appreciation Rights 114\u003c\/p\u003e \u003cp\u003eRestricted Stock versus SARs or Phantom Appreciation Plans 120\u003c\/p\u003e \u003cp\u003ePhantom Plans 121\u003c\/p\u003e \u003cp\u003eISOs versus Non-ISOs 122\u003c\/p\u003e \u003cp\u003eThe Advantage of ISOs 124\u003c\/p\u003e \u003cp\u003eNon-ISOs with Tax Reimbursement 125\u003c\/p\u003e \u003cp\u003eThe Tax Benefit to the Company 127\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 10 Option Granting Practices 129\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOption Granting Practices 135\u003c\/p\u003e \u003cp\u003eThe Council of Institutional Investors 142\u003c\/p\u003e \u003cp\u003eEquity Retention Practices 143\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 11 Director Compensation 145\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRetainer and Differential Pay 147\u003c\/p\u003e \u003cp\u003eMinimum Equity Requirements 148\u003c\/p\u003e \u003cp\u003eDirector Compensation Procedure and Process 149\u003c\/p\u003e \u003cp\u003eShareholder Approval 151\u003c\/p\u003e \u003cp\u003ePerquisites, Repricing and Exchange Programs,Change in Control, and Severance Payments 151\u003c\/p\u003e \u003cp\u003eDisgorgement 152\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 12 Negotiating for the Executive 153\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCEO Turnover 154\u003c\/p\u003e \u003cp\u003eNew Candidates for CEO or Other Executive Positions 154\u003c\/p\u003e \u003cp\u003eEmployment Agreements with Private Equity Buyers of CEO’s Business 161\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 13 Executive Compensation and Section 409A of the Internal Revenue Code 163\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBackground 166\u003c\/p\u003e \u003cp\u003ePlans That Do Not Provide for the Deferral of Compensation 168\u003c\/p\u003e \u003cp\u003eNonqualified Deferred Compensation Plan – Plans that Provide for Deferred Compensation 172\u003c\/p\u003e \u003cp\u003eSpecial Rule Applicable to Specified Employees 173\u003c\/p\u003e \u003cp\u003eChange-in-Control Events 174\u003c\/p\u003e \u003cp\u003eChange in the Ownership of a Corporation 175\u003c\/p\u003e \u003cp\u003eChange in the Effective Control of a Corporation 176\u003c\/p\u003e \u003cp\u003eChange in Ownership of a Substantial Portion of a Corporation’s Assets 177\u003c\/p\u003e \u003cp\u003eStructuring the Payments upon an Event Payment Trigger 178\u003c\/p\u003e \u003cp\u003eSpecified Time or Fixed Schedule 179\u003c\/p\u003e \u003cp\u003eEquity-Based Compensation 179\u003c\/p\u003e \u003cp\u003eSection 409A Compliance 181\u003c\/p\u003e \u003cp\u003eAppendix A Compensation Committee Charter 183\u003c\/p\u003e \u003cp\u003eAppendix B Corporate and Securities Update:SEC Adopts Sweeping Overhaul of its Executive Compensation Disclosure Requirements (September 2006 and revised December 2006) 189\u003c\/p\u003e \u003cp\u003eAppendix C Employment Agreement 213\u003c\/p\u003e \u003cp\u003eAppendix D Public Company Equity Incentive Plan 233\u003c\/p\u003e \u003cp\u003eAppendix E Search Terms Typically Required to be Researched by Public Company in Option Backdating Investigations by the Securities and Exchange Commission 285\u003c\/p\u003e \u003cp\u003eAppendix F What an Employee Should Know About His or Her Stock Options 289\u003c\/p\u003e \u003cp\u003eIndex 309\u003c\/p\u003e   \u003cp\u003e\u003cb\u003eFREDERICK D. LIPMAN\u003c\/b\u003e is a senior partner with the international law firm of Blank Rome LLP and also the President of the Association of Audit Committee Members, Inc., a nonprofit organization. He was a lecturer in the MBA program at the Wharton School of Business and at the University of Pennsylvania Law School. A graduate of Harvard Law School, he has more than forty years' experience in areas of corporate governance, M\u0026amp;As, private equity, and IPOs. Mr. Lipman is the author of ten other books including \u003ci\u003eAudit Committees\u003c\/i\u003e and Wiley's recent \u003ci\u003eCorporate Governance Best Practices\u003c\/i\u003e. He has appeared on television programs on CNBC, CNN, and Bloomberg as a national commentator on initial public offerings, venture capital, mergers and acquisitions, and stock options. He has been quoted in the\u003ci\u003e Wall Street Journal\u003c\/i\u003e and other publications and is located in the Philadelphia, Pennsylvania office of Blank Rome LLP. \u003c\/p\u003e\u003cp\u003e\u003cb\u003eSTEVEN E. HALL\u003c\/b\u003e is founder and Managing Director of Steven Hall \u0026amp; Partners, a compensation consulting firm located in New York City. He has over thirty years of experience in rendering advice to organizations in both the public and private arenas on a broad array of topics, including executive compensation, board remuneration, and governance issues related to the compensation committee. Mr. Hall is also a member of the faculty of the National Association of Corporate Directors (NACD), where he teaches courses focused on the responsibilities of board members in the areas of executive compensation and corporate governance. He is a frequent author and speaker and has appeared as a commentator on CNBC, CNN, and other national networks. He has also been quoted in the\u003ci\u003e New York Times,\u003c\/i\u003e the \u003ci\u003eWall Street Journal,\u003c\/i\u003e and other U.S. and international periodicals.    \u003c\/p\u003e\u003cp\u003e\u003cb\u003eEXECUTIVE COMPENSATION Best Practices\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003eExecutive compensation practices are under enormous scrutiny from activist shareholders, corporate governance rating groups, the media, and lawmakers. This public controversy over executive pay has resulted from the failure of compensation committees to use \"best practices\" in establishing CEO compensation and in the failure to adequately explain to shareholders both the methodology used and the growing competition for executive talent with private equity funds. \u003c\/p\u003e\u003cp\u003e\u003ci\u003eExecutive Compensation Best Practices\u003c\/i\u003e demystifies this topic, with a hands-on guide providing comprehensive compensation guidance for all members of the board, as well as best practice guidance for compensation committee members and executives who work with the compensation committee. \u003c\/p\u003e\u003cp\u003eAuthors Frederick Lipman and Steven Hall provide the compensation committee of the board of directors for both profit and nonprofit organizations with a thorough reference to executive compensation best practices, including: \u003c\/p\u003e\u003cul\u003e \u003cli\u003eEstablishing goals and objectives for executives before performance\u003c\/li\u003e \u003cli\u003eTying executive officer goals into the strategic plan of the company as well as the year-to-year budget\u003c\/li\u003e \u003cli\u003eBest practices in establishing peer groups and benchmarking\u003c\/li\u003e \u003cli\u003eCompeting with private equity groups for executive talent\u003c\/li\u003e \u003cli\u003eExamples of some of the best practices by major companies in describing to shareholders executive compensation goals and objectives\u003c\/li\u003e \u003cli\u003eBest practices in the routine operations of compensation committees\u003c\/li\u003e \u003cli\u003eBest practices to avoid charges of conflict of interest\u003c\/li\u003e \u003cli\u003eBest practices that should be followed by executives in negotiating their own employment and severance agreements\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eIncluding best practice guidance on the new Securities and Exchange Commission (SEC) executive compensation disclosure rules, which were issued in August 2006, Executive Compensation Best Practices contains sample agreement forms and results and analysis of the latest compensation studies.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989183217893,"sku":"NP9780470223796","price":75.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470223796.jpg?v=1761783123","url":"https:\/\/k12savings.com\/es\/products\/executive-compensation-best-practices-isbn-9780470223796","provider":"K12savings","version":"1.0","type":"link"}