Repricing and backdating


11-May-2020 12:32

In the other direction, "some of the largest and most successful corporation" in the US—Google, Capital One Financial, Apple Computer, Pixar—paid a CEO annual salary a token

In the other direction, "some of the largest and most successful corporation" in the US—Google, Capital One Financial, Apple Computer, Pixar—paid a CEO annual salary a token $1—i.e.their pay was all in bonuses, options and or other forms.For example, in 2011 Alpha Natural Resources' CEO failed to meet the compensation formula set by the board, in large part because of his overseeing the "biggest annual loss" in the company's history.

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In the other direction, "some of the largest and most successful corporation" in the US—Google, Capital One Financial, Apple Computer, Pixar—paid a CEO annual salary a token $1—i.e.

their pay was all in bonuses, options and or other forms.

For example, in 2011 Alpha Natural Resources' CEO failed to meet the compensation formula set by the board, in large part because of his overseeing the "biggest annual loss" in the company's history.

He was given a half million dollar bonus nonetheless on the grounds of his "tremendous" efforts toward improving worker safety.

—i.e.their pay was all in bonuses, options and or other forms.For example, in 2011 Alpha Natural Resources' CEO failed to meet the compensation formula set by the board, in large part because of his overseeing the "biggest annual loss" in the company's history.

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An issuer should tailor these guidelines to create an internal policy that is suitable to its particular needs and resources.This separation of those who run a company from those who directly benefit from its earnings, create what economists call a "principal–agent problem", where upper-management (the "agent") has different interests, and considerably more information to pursue those interests, than shareholders (the "principals").This "problem" may interfere with the ideal of management pay set by "arm's length" negotiation between the executive attempting to get the best possible deal for him/her self, and the board of directors seeking a deal that best serves the shareholders, rewarding executive performance without costing too much.The compensation is typically a mixture of salary, bonuses, equity compensation (stock options,etc.), benefits, and perquisites.



In the United States, the compensation of company executives is distinguished by the forms it takes and its dramatic rise over the past three decades and wide-ranging criticism leveled against it. In the past three decades in America executive compensation or pay has risen dramatically beyond what can be explained by changes in firm size.… continue reading »


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