Given the amount of expertise, judgment and skill required in hiring a new CEO — to say nothing of time — special retainers for leading a CEO search or executive transition used to be de rigueur. But no longer.
A survey conducted by TheCorporateCounsel.net asking if boards had paid a special fee for serving on a CEO search committee received only 14 responses, and among that sample, only 7% reported paying directors a fee. In the same vein, a 2016 study conducted by Equilar found 15 boards that had paid special committee fees, and only one explicitly tasked the committee with CEO search responsibilities.
A look through director compensation disclosures using MyLogIQ’s SEC filings intelligence service shows that CEO search committees with special fees were more common a decade ago than in recent years. Comparative data is difficult to come by given that companies don’t hire new CEOs on a regular basis. However, overall the data appears to paint a picture of special CEO search fees going the way of the dodo.
Compensation committees at S&P 500 companies are increasingly tying annual bonuses to measures beyond financial…
The pay gap between CEOs and their employees has widened over the past half decade,…
Chip maker Broadcom gave Hock Tan, its chief executive, a $161 million stock award, instantly…
Elon's Musk's $56 billion pay package's upheaval, a hedge fund sanctioned for failing to preserve…
Disclosures about directors' skills and expertise are increasingly coming under the microscope as investors ramp…
On Jan. 1, several of the nation's biggest companies — including Morgan Stanley, Kraft Heinz,…