Monthly Archives: March 2018

ASC 842 Lease Disclosure Trends

Uncategorized

Accounting changes triggered by the new FASB ASC 842 rule on lease liabilities and assets pose a potential risk to company SEC filings. Using our CompanyIQ™ platform, MyLoGIQ has analyzed SEC filings over the past six months to understand how companies are reacting to this new accounting rule. 

As expected, the most common disclosure location in SEC filings was in the Summary of Significant Accounting Policies section of Footnotes to Financials. For companies that will have a material impact from ASC 842, our study highlighted a best practice company that disclosed the impact in both the MD&A section as well as the Footnotes to Financials section with language that was consistent across both sections.

The top two industries affected by ASC 842 are manufacturing and finance based on our study of the 10-Qs and 10-Ks of the nearly 600 companies that filed from October 1, 2017 to March 20, 2018.

CEO State Pay Ratios – Less Than a Day to Earn a Year’s Salary

MyLogIQ Fact Studies

Several of America’s CEOs have to work less than a day to earn a year’s salary/the average person’s annual salary.  That’s the finding from MyLoGIQ’s review of CEO pay of S&P 500 companies.

MyLogIQ reviewed the 2017 pay of 164 CEOs of S&P 500 companies and found that 70 of those CEOS had to work less than one day to make the annual salary of the median worker in the state where their company is headquartered.

14 CEOs only had to work until lunch to make the same salary as the median worker in their state.

Another 62 CEOs had to work between a day and 2.5 days to earn the median salary of their state.

The MyLoGIQ pay ratio provides a state by state comparison of average CEO state median pay ratios.

 

 

Cannabis Proposal Up for Proxy Vote at Eli Lilly Shareholder Meeting in May 2018

MyLogIQ Fact Studies
Cannabis Proposal Up for Proxy Vote at Eli Lilly Shareholder Meeting in May 2018.

A shareholder proposal to help decriminalize cannabis will be on Eli Lilly’s 2018 proxy and will be up for a vote at the annual shareholder meeting on May 7, 2018.

Fred Pfenninger of Indiana, who owns 79 shares of Eli Lilly common stock, started the process of placing this proposal before the Lilly Board on November 2016 for the 2017 proxy vote.  Lilly forwarded the proposal to the SEC under Rule 14a-8 the following month as a no act filing requesting that the SEC deny the proposal from going forward. At that time, Lilly argued that the proposal was not received at their headquarters before the deadline for submitting shareholder proposals. However, the proposal made it to the 2018 Annual shareholders meeting.

The Lilly Board is recommending against the proposal, which appears as Item 7 on the 2018 Proxy Statement.  This should lead to an interesting vote in May.

Interesting Facts from the Proposal:

  • Lilly was a world leader in cannabis based pharmaceutical products in the early 1900s
  • Lilly sold 23 different cannabis items in its medical catalog in 1935
  • Eli Lilly, the third president of the company from 1932-1948, did his doctoral dissertation on cannabis in 1907.
  • Parke Davis worked with Lilly to create its own strain, Cannabis Americana, which Lilly grew in Greenfield, Indiana.

Source:  https://www.sec.gov/Archives/edgar/data/59478/000005947818000111/proxy2018_def14a.htm