Executive compensation best practices.* Elimination of "single trigger" change-in-control provisions * Reducing change-in-control gross-up payments slightly if excise tax Excise Tax 1. An indirect tax charged on the sale of a particular good. 2. A penalty tax applied to ineligible transactions in retirement accounts. This penalty is assessed by and paid to the IRS. Notes: 1. avoided * Tallying termination benefits for top executives under different scenarios * More even-handed document drafting (not always in executive's favor) * Taking long-term incentives out of supplemental executive retirement plans (SERPs) and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when * Executive reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. for personal use of corporate aircraft at net operating cost * Eliminating gross-ups from perquisites Fringe benefits or other incidental profits or benefits accompanying an office or position. The abbreviation perks is used in reference to extraordinary benefits afforded to business executives, such as country club memberships or the free use of automobiles. * Voluntary expanded proxy disclosure beyond SEC "letter of the law" * De-emphasis of competitive pay surveys * Maintaining accountability for failures ... avoiding "resets" * Stock retention requirements until after termination Source: Edward D. Graskamp, Managing Director, Frederic W. Cook & Co. Inc. |
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