Comments on: CEO Pay takes a hit http://www.richmondbizsense.com/2010/03/19/ceo-pay-takes-a-hit/ Richmond's Homepage For Business News Fri, 10 Feb 2012 02:28:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jason http://www.richmondbizsense.com/2010/03/19/ceo-pay-takes-a-hit/comment-page-1/#comment-12383 Jason Sat, 20 Mar 2010 01:22:38 +0000 http://www.richmondbizsense.com/?p=16589#comment-12383 I wouldn't be so quick to write off Media General. What started out as a newspaper company is now a media holding company. I think this recession is going to cause another evolution of the company, not its ultimate demise. I wouldn’t be so quick to write off Media General. What started out as a newspaper company is now a media holding company. I think this recession is going to cause another evolution of the company, not its ultimate demise.

]]> By: Mark Garofalo http://www.richmondbizsense.com/2010/03/19/ceo-pay-takes-a-hit/comment-page-1/#comment-12379 Mark Garofalo Fri, 19 Mar 2010 14:45:20 +0000 http://www.richmondbizsense.com/?p=16589#comment-12379 I was reading today’s article “CEO Pay Takes a Hit” and wanted to provide a different perspective. One of the most important things to look at in executive compensation among corporate issuers, is how the company performed relative to its peers over the same time period. If the company didn't perform well, was in the bottom half of its peer group, and CEO pay went up, then institutional investors may focus on corporate governance practices to send a message to the company. By that, they may withhold votes from the board’s compensation committee, and make the director election process more troublesome for the board members who had a say in approving the company's compensation that year. Since the article used Media General, I'll provide an example of another publishing company - The New York Times (NYSE: NYT) - whose CEO Janet Robinson received only a 4% base salary decrease, but was also granted a $2.3 M cash bonus, which was four times her total compensation in 2008. Oh, and they laid off 8% of the newsroom, and had all employees take a 5% base salary cut (except Janet). Following the 2008 market meltdown, investors are now pointing to corporate governance practices more than ever to hold issuers accountable for bad behavior. A lot of the old perks are no longer being tolerated by shareholders (e.g. using company aircraft for personal use and/or including excise tax gross-ups in executive employment agreements). Shareholders, as well as the media, are scrutinizing proxy statements now more than ever, so the days of companies being able to get away with unchallenged pay policies is likely over. Also, don’t forget that pending Congressional legislation introduced by Senator Dodd on Monday would mandate an annual advisory vote on compensation. If any Richmond area companies would like to discuss how their compensation practices might be viewed by their shareholders, please email me at mgarofalo@altmangroup.com. The Altman Group is the highest rated proxy solicitation and governance advisory firm since 2004. I was reading today’s article “CEO Pay Takes a Hit” and wanted to provide a different perspective. One of the most important things to look at in executive compensation among corporate issuers, is how the company performed relative to its peers over the same time period. If the company didn’t perform well, was in the bottom half of its peer group, and CEO pay went up, then institutional investors may focus on corporate governance practices to send a message to the company. By that, they may withhold votes from the board’s compensation committee, and make the director election process more troublesome for the board members who had a say in approving the company’s compensation that year.

Since the article used Media General, I’ll provide an example of another publishing company – The New York Times (NYSE: NYT) – whose CEO Janet Robinson received only a 4% base salary decrease, but was also granted a $2.3 M cash bonus, which was four times her total compensation in 2008. Oh, and they laid off 8% of the newsroom, and had all employees take a 5% base salary cut (except Janet).

Following the 2008 market meltdown, investors are now pointing to corporate governance practices more than ever to hold issuers accountable for bad behavior. A lot of the old perks are no longer being tolerated by shareholders (e.g. using company aircraft for personal use and/or including excise tax gross-ups in executive employment agreements).

Shareholders, as well as the media, are scrutinizing proxy statements now more than ever, so the days of companies being able to get away with unchallenged pay policies is likely over. Also, don’t forget that pending Congressional legislation introduced by Senator Dodd on Monday would mandate an annual advisory vote on compensation.

If any Richmond area companies would like to discuss how their compensation practices might be viewed by their shareholders, please email me at mgarofalo@altmangroup.com. The Altman Group is the highest rated proxy solicitation and governance advisory firm since 2004.

]]> By: John M http://www.richmondbizsense.com/2010/03/19/ceo-pay-takes-a-hit/comment-page-1/#comment-12378 John M Fri, 19 Mar 2010 13:49:01 +0000 http://www.richmondbizsense.com/?p=16589#comment-12378 I wonder if they wiil be able to make ends meet. Dominion doing okay but Media Gen is a dead end business ? I wonder if they wiil be able to make ends meet. Dominion doing okay but Media Gen is a dead end business ?

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