Thursday, July 27, 2006
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? posted by Susan Mangiero at 7/27/2006 12:21:00 AM
PENSION RISK MATTERSSM focuses on pension financial risk issues from a governance and fiduciary perspective. The goal is to identify important topics, ask thought-provoking questions, examine best practices and encourage meaningful debate about the $10 trillion global pension industry upon which millions of individuals depend. Author and consultant Susan M. Mangiero, Ph.D. is a CFA charter-holder, Accredited Valuation Analyst, Accredited Investment Fiduciary Analyst and certified Financial Risk Manager. Dr. Mangiero combines many years of experience in finance with a keen interest in solving problems and simplifying the complex (
