Nasdaq Stockholder Approval of Equity Compensation—Trap for the Unwary

Public companies commonly use their equity as a component of incentive compensation awarded to their executives and other employees.

Under Nasdaq Listing Rule 5635(c), prior stockholder approval is generally required before a listed company may issue shares under an equity compensation plan or other arrangement.  To satisfy this requirement, public companies typically adopt and obtain stockholder approval of an incentive plan that provides for a reserve of shares that may be issued pursuant to various enumerated types of awards. READ MORE

What Drives Nonprofit Executive Compensation?

When it comes to attracting and retaining talented leaders, the setting of executive compensation packages has posed continuing challenges to nonprofits since the 1980s. These challenges relate to the professionalization of the sector, the increasing desire to measure and reward success, and the need to retain and promote the most talented managers.  READ MORE

Compensation Disclosure: Trending Towards “No”

In addition to a resume and our candidate assessment, clients always ask us to provide current compensation information.  It’s common practice, as no company wants to spend time interviewing an attorney who would ultimately reject its best offer.  And although many attorneys bristle with reluctance at the request, we are usually able to get the information our clients request. READ MORE

The Dangers of Paying Employees Too Much

One of the more challenging compensation conversations I have as a consultant is helping clients understand that offering the highest pay isn't always the best option. There are dangers and downsides to "overpaying" people. It's certainly an unpopular sentiment at the neighborhood BBQ (and likely among many who read this article). READ MORE

New Job? Four Ways To Improve Your Salary Offer

After guiding thousands of clients through the salary negotiation process, I’ve noticed that when most people begin to negotiate a job offer, they focus on the base compensation and ways to improve it. While you may be able to improve the initial offer, you may not be successful getting to your “magic number” without being a bit more creative in how you approach the salary conversation. Compensation is made up of two types: fixed and variable. READ MORE

Partner Compensation and Theology

I compared CPA firms to law firms and asked why law firms publicly share their average equity partner compensation when they report their profitability in publications like The American Lawyer. CPA firms go to great measures to “hide” this information from their associates and potential recruits. It may not be “all about the money,” but the leaders of these great law firms will tell you that this metric gives them a major recruiting advantage when going after top talent. I’m not saying to go out and brag, but at least find a way to really let them know how financially successful a partner can be at your firm.  READ MORE