More About Executive Compensation
A few thoughts come to mind regarding the new SEC executive compensation disclosure requirements.
1. Will it be hard for analysts to interpret information about executive pensions if they are reported on an accumulated benefit basis but FASB requires the use of a projected benefit approach?
2. How do company compensation committees determine who gets what and why? Understanding the process by having access to meeting notes would be particularly helpful.
3. What volatility numbers will be used to determine the value of executive stock options?
4. How are D&O insurance costs likely to change in response to disclosures about the timing of option grants to executives?
5. How are pensions determined for non-executives and does the Compensation Committee interface with the company's benefits team?
1. Will it be hard for analysts to interpret information about executive pensions if they are reported on an accumulated benefit basis but FASB requires the use of a projected benefit approach?
2. How do company compensation committees determine who gets what and why? Understanding the process by having access to meeting notes would be particularly helpful.
3. What volatility numbers will be used to determine the value of executive stock options?
4. How are D&O insurance costs likely to change in response to disclosures about the timing of option grants to executives?
5. How are pensions determined for non-executives and does the Compensation Committee interface with the company's benefits team?
