
Farient Advisors is driving the market debate on executive compensation. Check out our latest interviews, news releases, videos, blogs and thought leadership.
Robin A. Ferracone provides expert commentary on the disputes between publicly held companies and proxy advisory firms over how peer groups should be chosen.
In her contributed column, Robin A. Ferracone discusses how companies and investors are learning that when developing peer groups, it’s more about business models than size; it’s about performance, not just pay; and it’s about multiple peer groups, rather than just 1 group.
Robin A. Ferracone discusses whether compensation committee members should be rotated on and off of the committee.
Robin A. Ferracone provides expert commentary on the factors that determine whether executive pay is appropriate in the eye’s of shareholders.
In an interview for the “Alumni News” section of the website, Robin A. Ferracone discusses her HBS experience and work at Farient Advisors.
Robin A. Ferracone discusses why corporate directors are tying CEO pay to corporate performance.
In her “Executive Pay Watch” blog, Robin A. Ferracone explains why pay for performance will continue to take center stage during the 2012 proxy season.
Robin A. Ferracone discusses the impact of say on pay on board behavior.
Robin A. Ferracone provides expert commentary on shareholder concerns related to pay for performance.
Statistics from Farient’s report for the Council of Institutional Investors are featured in Sarah Johnson’s article, which examines why for many companies, say on pay won’t be easier the second time around.
Farient senior vice president Gary Hourihan speaks with Joe Griesedieck , vice chairman of Korn/Ferry International, about trends in director selection.
Robin A. Ferracone explains how both the Compensation Committee and management should look to the external compensation consultant to add value.
Gary C. Hourihan provides expert commentary on the trend of increased accountability for CEOs and other C-suite executives.
Guest blogger Ken Daly, president and CEO of the National Association of Corporate Directors, provides a comprehensive definition of “pay for performance.”
Gary C. Hourihan provides expert commentary on how companies can establish internal guidelines for evaluating employees.
Robin A. Ferracone examines the impact of Zynga’s threat to recoup restricted stock from certain employees in advance of its IPO, and how it can provide a transparent plan for managing its incentive equity pool and employee engagement moving forward.
Robin A. Ferracone provides expert commentary on why say on pay votes will receive more attention during the 2012 proxy season.
Farient’s white paper on say on pay is highlighted by Ann Yerger, executive director of the Council of Institutional Investors.
Robin A. Ferracone provides expert commentary on how recent CEO exit packages are a bad deal for shareholders.
In her “Executive Pay Watch” blog, Robin A. Ferracone examines whether the pay packages for Meg Whitman and Ray Lane qualify as a good deal for shareholders.
Robin A. Ferracone and Farient Vice President Ronald R. Bottano discuss how companies should pay exceptional talent who can lead and scale the sales, marketing, product development and operations functions after an IPO.
According to Robin Ferracone, although companies have continued to reduce their perks and benefits offered to top management in an attempt to gain shareholder approval, the focus of next year’s say on pay votes will continue to be on pay-for-performance practices.
Drawing on insights from investors, Robin A. Ferracone discusses potential avenues for improvement in next year’s say on pay.
Staff Writer Reese Darragh highlights Robin Ferracone and Dayna Harris’ white paper, “Say on Pay: Identifying Investor Concerns,” released by the Council of Institutional Investors.
Robin A. Ferracone highlights the findings from her research on why investors voted against the 37 companies whose pay plans fell short of majority support between January 1 and July 1, 2011.
In her “Executive Pay Watch” blog, Robin A. Ferracone provides insight into Apple’s succession process by analyzing the company’s history since it went public in 1980.
Robin A. Ferracone’s discusses how compensation committees need to take charge in setting and communicating the details of pay programs.
Robin A. Ferracone provides expert commentary on the role of corporate secretaries in governance and executive pay design.
Robin A. Ferracone outlines how to ensure that your executive compensation program has been designed to work in good times and bad.
In her “Executive Pay Watch” blog, Robin A. Ferracone examines the effect of the Dodd-Frank Act one year after it was passed, and what changes we might expect in the future.
Robin A. Ferracone provides expert commentary on the new rules the SEC is developing to satisfy the Dodd-Frank mandate for pay-for-performance disclosure in proxies.
Robin A. Ferracone analyzes Say on Pay filings from companies including The Walt Disney Company, General Electric, Talbots and five others.
With shareholders becoming more active in matters of executive compensation, Robin A. Ferracone examines what it takes to be a successful compensation committee chair in her “Executive Pay Watch” blog.
Robin A. Ferracone provides expert commentary on why Silicon Valley’s top CEOs got a hefty bump in their paychecks for 2010.
In her “Executive Pay Watch” blog, Robin A. Ferracone explains that even a CEO’s $1 a year salary can leave compensation committees exposed to criticism for paying “no matter what” vs. paying for performance.
Farient Senior Vice President Gary C. Hourihan argues that if solid succession plans increase shareholder value, then executive compensation should be linked to succession planning effectiveness.
Farient Vice President Anna Natapova discusses incentive pay in executive bonus planning.
Robin A. Ferracone speaks with Stephen Brown about “yellow flags” in executive compensation and maintaining the delicate balance between managing shareholder rights and letting the board and management do their jobs.
In her “Executive Pay Watch” blog, Robin A. Ferracone argues that ISS’ one-size-fits-all approach to peer groups is probably not as meaningful as a custom cut of peers.
Robin A. Ferracone is quoted in this article and warns issuers to take note of their say-on-pay vote tallies, despite the vote’s non-binding nature.
Robin A. Ferracone examines whether performance measures in short- and long-term incentive plans should differ.
Robin A. Ferracone provides expert commentary on Citigroup Chief Executive Vikram Pandit’s $16.7 million retention bonus.
Robin A. Ferracone offers expert commentary as to whether companies have succeeded in linking short-term and long-term pay to company performance.
In her “Executive Pay Watch” blog, Robin A. Ferracone examines whether management is being paid what it’s worth at American Airlines by examining multiple factors, including how American’s stock price performed relative to other airlines.
Robin A. Ferracone’s commentary is included in this article which is part of the publication’s annual feature on executive pay.
Robin A. Ferracone examines how poor alignment between performance and pay, among other factors, contributes to a negative vote.
In a guest post on Robin A. Ferracone’s “Executive Pay Watch” blog, Dan Walter, President and CEO of Performensation and founder of Equity Compensation Experts, weighs in on pay transparency.
Robin A. Ferracone examines what companies are doing to improve environmental sustainability, and whether such programs are finding their way into incentive plans.
Robin A. Ferracone explains how the disclosure of pay in proxy materials has improved.
Robin A. Ferracone provides commentary explaining how the introduction of new “say on pay” rules appears to be having an immediate effect on the traditionally adversarial relationship between shareholders and corporate executives.
Robin A. Ferracone argues that in order to assess executive pay, one has to raise the quality of the discussion in order to consider pay vs. performance rather than just look at pay in a vacuum.
Robin A. Ferracone examines whether the SEC is off the mark in their compensation committee independence rules.
Robin A. Ferracone examines common themes among companies such as Jacobs Engineering and Beazer Homes which have received “no” votes
Robin A. Ferracone discusses the indicators which put investors in favor of executive pay systems.
Farient Vice President Ronald R. Bottano discusses the strategic compensation challenges that are inherent in the evolution to public-company status.
Robin A. Ferracone outlines the steps companies must take to ensure the effectiveness of its succession planning process.
In her “Executive Pay Watch” blog, Robin A. Ferracone discusses what we can learn from the major banks during the financial crisis that might help us identify and eliminate risky compensation practices before they cause systemic damage.
Robin A. Ferracone critiques the SEC’s new bank regulations on compensation to fix “short-termism” on Wall Street by realigning bankers bonuses with long-term performance, and offers a more holistic solution.
According to Robin A. Ferracone, shareholders will need to rely on advisory groups to decide on say on pay.
In her “Executive Pay Watch” blog, Robin A. Ferracone discusses whether or not she favors Total Shareholder Return (TSR) as a performance measure for performance share plans.
Robin A. Ferracone discusses the impact of Dodd-Frank on CEO pay with CNBC Sr. Talent Producer Lori Ann LaRocco in the “C-Suite Insider” blog.
According to Robin A. Ferracone, with proxies getting longer, it is becoming increasingly important that CD&As provide stakeholders with a clear understanding of the logic, decisions, and transparency of a company’s executive pay programs.
Robin A. Ferracone discusses how Dodd-Frank and Say on Pay is affecting how companies communicate with their shareholders in the CD&A.
Farient’s alliance with Patterson & Associates is highlighted in the “Need to Know” feature.
This article features commentary from Robin A. Ferracone and highlights Farient’s proprietary alignment model.
Feature article on Farient’s analysis of executive compensation which concludes that at least 60% of companies in every sector have done a poor job of aligning their CEOs’ pay with how their companies performed and what their peers paid. A free subscription is required to view the article.
Robin A. Ferracone provides insight on how compensation committees can identify and retain a compensation consultant who is both independent and whose capabilities extend beyond the collection and analysis of competitive pay data.
“Executive Pay Watch” blog guest contributor Simon Patterson outlines the top ten resolutions for compensation committees in 2011.
Robin A. Ferracone discusses the challenges companies face when transitioning through IPOs and the most successful strategies in dealing with these challenges.
In her “Executive Pay Watch” blog, Robin A. Ferracone explains what it looks like if a company suffers from a “culture of misalignment.”
According to Robin A. Ferracone, “Over the past decade, executive employment agreements, and in particular, certain elements of these agreements, have gone from broadly accepted to out of vogue.”
In her “Executive Pay Watch” blog, Robin A. Ferracone provides a better answer than the extremes of applying either no discretion or complete discretion.
Robin A. Ferracone’s column in the fourth quarter issue of Directors & Boards magazine on how to strike the right balance in director’s compensation.
Robin A. Ferracone provides her thoughts on what investors want in the age of Dodd-Frank in her “Executive Pay Watch” blog.
Robin A. Ferracone discusses how “the question is not what the SEC wants from proxy statements. Rather, it’s what investors want.”
Robin A. Ferracone’s book Fair Pay, Fair Play: Aligning Executive Performance and Pay is included in the “Alumni Bookshelf” section of the HBS Alumni Bulletin.
Robin A. Ferracone discusses Occidental Petroleum CEO Ray Irani’s compensation.
Robin A. Ferracone discusses executive compensation with Mac Greer and explains how to define fair pay.
Robin A. Ferracone’s column in the third quarter issue of Directors & Boards magazine on how Say on Pay can become a useful communication platform between companies and their investors.
Robin Ferracone speaks with Gregg Greenberg about Wall Street bonuses and how the Dodd-Frank Act with impact the executive compensation landscape. To access the audio interview, scroll to the 10/6 podcast titled “Casual Male’s Growth Plans, CEO of GOL, Wall Street Pay, Hot and Cold Stocks.” Ms. Ferracone’s segments starts at 24:10.
Robin A. Ferracone discusses the executive compensation provisions within the Dodd-Frank Wall Street Reform and Consumer Protection Act in WorldatWork’s Compensation Focus electronic newsletter.
James McRitchie reviews Robin A. Ferracone’s book Fair Pay, Fair Play: Aligning Executive Performance and Pay.
Robin A. Ferracone explains how to tell if your performance is measured by effort or outcome.
The Insana Quotient Radio Show talks to Robin Ferracone about her recent book, Fair Pay, Fair Play: Aligning Executive Performance and Pay, and recent “Say on Pay” legislation.
Robin A. Ferracone discusses why CFOs who work for public companies are almost always paid more than CFOs working for private companies.
Fair Pay, Fair Play: Aligning Executive Performance and Pay, written by Robin A. Ferracone, is included in the article “New Books for Boards.”
In this article on excessive CEO pay, Robin A. Ferracone says, “Some of the misalignment between shareholder return and CEO pay arises from competition among companies. Compensation committees routinely peg a substantial portion of CEOs’ pay to competitors, often at the 75th percentile. That means that pay flows even when shares fall, so long as CEOs in the selected peer group do well.”
Robin A. Ferracone co-authors this column in the second quarter issue of Directors & Boards magazine.
Robin A. Ferracone is quoted in this article which attributes homebuilders’ outsized pay to a quirk of the industry: the involvement of founders and their sons.
In this Conference Board Review feature, Robin A. Ferracone provides commentary on the pay gap between U.S. CEOs and those abroad.
Robin A. Ferracone participated in an executive roundtable designed to help new board members understand the ins and outs of executive compensation.
Robin A. Ferracone highlights the power HR executives can yield in the area of executive compensation.
With the sharpened focus on ensuring genuine alignment between executive compensation and performance, Robin A. Ferracone discusses how to educate directors new to the compensation committee about this issue.
Robin A. Ferracone discusses the new disclosures if a CEO also serves as chair, and how boards and compensation committees can address the issue.
Robin A. Ferracone co-authors this column in the first quarter issue of Directors & Boards magazine.
Robin A. Ferracone discusses compensation models in consulting firms.
Robin A. Ferracone provides commentary on why corporate boards are hiring smaller executive-pay consultancies.
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The Council of Institutional Investors have released a report by Farient Advisors analyzing investor motivations to vote against “say on pay” at companies where the proposal failed to receive majority support at 2011 annual meetings.
Robin Ferracone was named to the National Association of Corporate Directors’ (NACD) 2011 Directorship 100, a list of the most influential people in the boardroom and the corporate governance arena.
Robin A. Ferracone provides regular commentary designed to help companies and their compensation committees better understand – and prepare for – the upcoming proxy season as well as how to approach executive compensation, and the issues surrounding it, moving forward.
Over his career, Gary has been a trusted advisor to the board and executive management of numerous firms on a variety of issues including, compensation, organization, and leadership and succession planning.
The site embodies Farient’s goals of sharing the most up-to-date thought leadership on executive compensation and performance while providing corporate board members, compensation committees, the executive c-suite, and institutional investors valuable insights on pay and performance alignment, compensation committee processes, goal setting and other relevant topics.
Dayna L. Harris and Daniel R. Mumenthaler have joined the Los Angeles office as a Vice President and Manager, respectively.
In her new book, “Fair Pay, Fair Play: Aligning Executive Performance and Pay” (Jossey-Bass, April 2010), author Robin A. Ferracone addresses a growing need among boards, senior executives, HR, compensation professionals and investors for a new way to think about executive compensation.
Farient Advisors has joined The Conference Board’s Governance Center as a sponsor of Directors’ Institute Roundtable forums. The forums enable board-level directors to stay abreast of trends in governance and meet the challenges of their unprecedented responsibility and accountability.
Robin A. Ferracone discusses whether the 27 percent jump in average CEO pay last year is fair.
Robin Ferracone discusses her book, Fair Pay, Fair Play: Aligning Executive Performance and Pay, in this in-depth Q&A on why now is the time for organizations to focus on pay and performance alignment.
Determining how to Pay CEOs – Forbes.com Robin discusses aligning pay and performance and the metrics to use when determining CEO pay
Myths about Executive Compensation – Robin discusses how outliers shape conversations about top jobs’ salaries in this interview with Forbes.com
Fair Executive Pay – Robin discusses the importance of learning to shape a new conversation around executive pay
Climb The Corporate Ladder – In this interview, Robin encourages employees to differentiate themselves from the rest of the pack
Robin A. Ferracone is interviewed by Matt Andrejczak in this MarketWatch video, explaining that the majority of CEOs are not overpaid, and that few “outlier” CEOs are skewing public perception.
Creating the Future of Executive Compensation Consulting
The Council of Institutional Investors have released a report by Farient Advisors analyzing investor motivations to vote against “say on pay” at companies where the proposal failed to receive majority support at 2011 annual meetings. It draws on data from 37 companies whose pay plans fell short of majority support between January and July 2011, as well as interviews with institutional investors, investment management firms, proxy advisers and solicitors, and company officials.
On July 27 the SEC invited public commentary on various aspects of the Dodd-Frank Act. Farient is providing suggestions for the SEC to consider with respect to how companies could be required to disclose pay-for-performance
Implications of the Executive Compensation Provisions in the Dodd‐Frank Wall Street Reform and Consumer Protection Act.
This survey revealed that corporate directors, executives and shareholders believe that excessive executive compensation is a significant issue. However, not surprisingly, most of the survey respondents do not feel as though more government intervention is the answer.
Results of the 2009 Corporate Board Member/Farient Advisors Study of Executive Compensation Practices.
Robin A. Ferracone examined the decision-making processes surrounding executive compensation and the need for new thinking, tools, governance and principle-based disciplines.
Robin A. Ferracone led the session “Say-on-Pay Strategies for Compensation Committees” with Amy Borrus, Deputy Director of the Council for Institutional Investors.
Farient Vice President Dayna Harris and Executive Chair Robin Ferracone presented the findings from their recent research that analyzes 2011 management Say on Pay proposals that received majority or significantly high “no” votes. Please see their presentation video below.
Farient Senior Vice President Gary C. Hourihan presented at this event held by the Practicing Law Institute.
Robin A. Ferracone co-hosted the webinar “How to Gain Shareholder Approval for an Equity Plan” with Intel Corporation’s Director of Executive Compensation and Corporate Design, Brit Whitman.
Robin A. Ferracone hosted the workshop “Bringing the Investor Perspective to the Boardroom.”
Robin A. Ferracone participated in a panel discussion at this event, which was held at the New York Stock Exchange.
Robin A. Ferracone delivered a speech titled, “Aligning Pay & Performance: From Proxy Objective to Dodd-Frank Mandate.”
Robin A. Ferracone, Executive Chair of Farient Advisors, recently presented at CII’s Fall Meeting: 25 Years of Leadership. More than 500 members of CII participated in the meeting at the historic Del Coronado Hotel in Coronado, California. Ferracone, author of the recently published “Fair Pay, Fair Play: Aligning Executive Performance and Pay,” presented The Holy Grail: Aligning Executive Performance and Pay. Click here to download the presentation or watch the video below.