Insights

It's Hard to Slice and Dice CEO Paychecks

The Wall Street Journal

Radford’s Ted Buyniski discusses the global implications of the SEC’s newly proposed CEO to worker pay ratio disclosure rules with The Wall Street Journal.

Fatter Paychecks Expected at Tech Firms

The Wall Street Journal

Radford's David Knopping recently connected with The Wall Street Journal to share his thoughts on compensation trends for key executives at venture-backed and pre-IPO technology companies amid new data pointing to higher pay for sales and technology function leaders.

Biopharma Job Outlook Bleak through Mid-Decade

Genetic Engineering & Biotechnology News

With a number of layoffs planned in the next year at big pharma companies in both the US and Europe, GEN News connected with Radford's Linda Amuso to discuss the overall hiring environment at life sciences companies. Leveraging Radford's comprehensive database, Linda provided insights on the differing prospects for employees at small, mid- and large-sized firms.

What do San Diego's CEOs make?

San Diego Union Tribune

Keeping with past tradition, the San Diego U-T published its annual CEO compensation report today. Inside you'll find the latest updates on pay trends in the region along with commentary from Radford's Ken Wechsler on the growing importance on Say-on-Pay votes.

Start-Up Staff Getting More Cash

The Wall Street Journal

Leveraging new data from Radford's Pre-IPO/Ventured-Backed Survey, The Wall Street Journal explores the shrinking compensation gap between private and public companies in Silicon Valley as the war for talent heats up.

Boards Assail Proxy Advisors' Peer Groups

Agenda Week

Radford Associate Partner David Knopping provides commentary on the contrasting approaches used by ISS and Glass Lewis to develop peer groups when conducting pay for performance assessments. With key advisory firms revising their methodologies ahead of Say-on-Pay votes, companies are now racing to understand the implications of these policy changes.

Executive Compensation: Getting Philosophical

Vistage Connect

In this contributed article, Radford's Ken Wechsler and Alexander Cwirko-Godycki discuss many of the important decision points executives and Boards of Directors face when developing a compensation philosophy.

Wealth After an IPO Can Cause Employees to Go

Workforce Management

Radford Associate Partner Brett Harsen provides commentary on the challenges faced by recently public companies as they seek to retain key employees after an IPO. Beyond compensation, companies should also plan ahead for post-offering management training, career path development and HR systems.

For Tech's Elite, Mobile Gaming Is a Big Play

The Wall Street Journal

As mobile and social gaming grow in prominence, hiring in the sector is also gaining steam. In this Wall Street Journal story on the rising tide of gaming company investments, Radford provides new data on the hiring outlook for gaming and entertainment companies in the technology sector.

Leveling Pay on a Global Scale

Human Resource Executive Magazine

Radford Associate Partner Brett Harsen discusses the challenges of implementing global leveling systems for job titles and compensation on the heels of a new study showing more companies are moving to adopt such global standards.

What About the Rest of Us? - Beyond CEO Pay

The Conference Board Review

Radford President Linda Amuso and other industry leaders discuss trends in executive compensation below the CEO level, addressing issues like internal pay equity, corporate culture and investor scrutiny of pay programs.

GCs Find Options Never Go Out of Style

The Recorder

Radford Associate Partner Brett Harsen discusses the latest trends in equity compensation at pre-IPO firms in Silicon Valley, particularly the move by a few large companies to consider the use of restricted stock while still private.

Is It Time to Change Pay Metrics?

Agenda

Radford Partner, Valuation Business Executive Terry Adamson is interviewed for Agenda's article regarding pay metrics.

Underwater Stock Options: What Have We Learned?

WorldatWork

Written by Radford Associate Partners Jon Burg and Brett Harsen for WorldatWork's Compensation Focus. The article examines lessons learned in the aftermath of the numerous underwater exchanges that took place in 2009, looking at both shareholder and employee responses to the programs.

Valley Takes a New Look at Stock Options

San Jose Mercury News

Associate Partner Brett Harsen is interviewed for this front page San Jose Mercury News article that discusses the current state and future of stock option use by technology companies in Silicon Valley

Plenty of Options

The Recorder

Associate Partner Jon Burg gives a consulting perspective of the current state of underwater exchange programs for The Recorder, a California legal publication

Employers Give Underwater Options New Life

Workforce Management

Associate Partner Brett Harsen is interviewed for this article discussing the growing number of employers that are allowing employees to exchange underwater options via underwater exchange programs

Compensation: Time to Switch from Cost-Cutting Back to Compensation Strategy?

Human Resources Magazine, Hong Kong

In this June issue of Human Resources Magazine, Hong Kong, regular contributor Associate Partner, Global Relationship Manager Marie Brinkman and Associate Partner David Knopping review the compensation strategies that companies should consider following reports of an economic uptick

Boom Time Coming for Option Exchanges

Agenda

Associate Partner Brett Harsen provides commentary for the Financial Times' online publication Agenda which discusses the expected increase in option exchanges this fall

Option Valuations in Light of Economic Instability

The NASPP Advisor

In this Q&A article for NASPP's The NASPP Advisor Radford Partner, Valuation Business Executive Terry Adamson talks about how companies are currently approaching the process of valuing their employee stock options

Managing Cost at the Cost of Labour

Singapore Business Times

Associate Partner, Global Relationship Manager Marie Brinkman discusses the difference between the current economic downturn and recessions in the past and how employers are focusing on retaining employees

Weathering the Compensation Storm of 2009

Human Resources Magazine, Hong Kong

In this by-lined article, regular contributor Associate Partner, Global Relationship Manager Marie Brinkman discusses the difference of the current economic downturn to recessions in the past and how employers are focusing on retaining employees

Firms Jump to Salvage 'Underwater' Stock Options

Wall Street Journal

Associate Partner Brett Harsen is interviewed for this Wall Street Journal article discussing how companies are executing their own bailouts for holders of worthless stock options

Is Your Stock Option Plan Underwater?

StockSense Newsletter

Fidelity's StockSense newsletter recently spoke with Radford Partner Terry Adamson and Associate Partner Brett Harsen for their insights into how companies should go about structuring an underwater options exchange program

Technology Options Sink

Wall Street Journal

Associate Partner Brett Harsen is interviewed for this Wall Street Journal article discussing shareholders' role in stock option repricings and exchanges

Beyond Compensation - Is It All Just Money?

Human Resources Magazine, Hong Kong

Associate Partner Marie Brinkman and Aon Consulting's Principal Consultant Rick Payne author this feature cover story discussing retention strategies for today's environment in Asia

Firms Try to Shore Up Incentive Pay

The Wall Street Journal

Radford Founder John Radford is interviewed for a The Wall Street Journal article discussing the steps companies are taking to reward employees during these uncertain economic times

CEO Succession Compensation Design

Talent Management

Radford Partners Ted Buyniski and Ed Speidel, and Associate Partner Robert Surdel discuss CEO succession and compensation design in this feature story

[Listen]">Forum - KQED

KQED Radio, San Francisco NPR Affiliate

Radford Founder Steve Radford is interviewed for KQED's "Forum" segment on the trials, tribulations and joys of starting a business with a family member

HR Initiatives for the Growing Asian Economy

Human Resources Magazine, Hong Kong

Associate Partner Marie Brinkman discusses the major initiatives that companies in Asia are deploying to attract and retain workers in this by-lined front page feature

High Technology Board Compensation

Directors & Boards: Boardroom Briefings

Edward Speidel and Robert Surdel examine governance practices and current trends in outside director compensation

Putting Pay for Performance into Practice

Workspan

This by-lined article by Associate Partner Tim Brown reveals the correlation between the number of ratings used in the pay-for-performance process and the actual size of the award

Stock Option Trends and Surveys

The NASPP Advisor

News from Radford Advisory Services' Equity Trends Analysis is included in this NASPP newsletter article about stock option trends

Technology Salary Budgets Up 5%

Workspan

Data from Radford's Quarterly Summary of Industry Trends Report is used in this Workspan article about technology salary budgets

Bank's Auction Plan Could Cut Companies' Charges for Options

San Jose Mercury News

In this article regarding innovative transferable stock option programs, San Jose Mercury News features Zions Bancorporation's creative strategy in dealing with FAS 123(R) regulations as detailed in our latest webcast entitled, The Post-FAS 123(R) Frontiers of Equity Design - A Conversation with Google and Zions Bank

No Longer an Option

Business Finance Magazine

Radford Partner Ted Buyniski is interviewed for this feature cover story on best practices in compensation management

Performance-Based Perks Gain Popularity

Employee Benefit News

In this feature on performance-based compensation, Employee Benefit News magazine interviews Linda E. Amuso, senior vice president, for her thoughts on the trend toward variable pay plans as a means to effectively motivate and reward employees

Google Options to Be Sold on Web

Los Angeles Times

Radford Partner Ted Buyniski offers commentary on Google's plans to allow employees to sell their stock options through an online auction

Google to Offer Variation on Stock Options

Investor's Business Daily

Radford Partner Ted Buyniski offers commentary on Google's plans to allow employees to sell their stock options through an online auction

Google's New Stock Option Plan

The Money Times, India

Radford Partner Ted Buyniski offers commentary on Google's plans to allow employees to sell their stock options through an online auction

What Will Your 2006 Bonus Look Like?

The Scientist

In an interview with The Scientist magazine, Radford Founder John Radford talks about what bonuses will look like in 2006

Double Vision

Silicon Valley/San Jose Business Journal

In this two-page feature, John and Steve Radford talk about founding a family business and keeping it growing for 30 years

Tech Company Turnover Down in Q2

eWeek.com

Radford's Q2 Quarterly Summary of Industry Trends report data is used for this article about new turnover figures at technology companies

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Bonus Season Comes to Western Europe

EMEA Market Insights - Technology Edition

Every year, bonus season brings with it an opportunity to explore cash incentive practices across the European technology sector. In this EMEA Market Insights article we explore the prevalence of various bonus plan types across western Europe, as well as expected funding levels for 2014.

Adjusting Your Sales Incentive Plan to Keep Up With a Changing Market

EMEA Market Insights - Life Sciences Edition

The life sciences sector undergoes constant change, particularly in the vast EMEA region where regulatory and market factors are as diverse as they get. In this EMEA Market Insights article we examine how sales compensation models are changing to keep pace with an increasingly complex sales environment.

Your Indexed Relative TSR Plan Just Got More Complex

Pop quiz: How many stocks are included in the S&P 500? How about the NASDAQ 100? It might seem obvious at first, but as of Wednesday, April 2, 2014, the answers are 501 and 101 respectively. As a result, life just got slightly more complex for everyone using performance equity awards with an indexed relative total shareholder return metric. Read our Expert Insight to learn why.

EITF Issue 13-D Explained

Seeking to address gray areas in the expensing of performance awards, the Financial Accounting Standard Board's ("FASB") Emerging Issues Task Force ("EITF") issued new guidance on March 13, 2014 covering situations where a performance target can be achieved after an employee provides the requisite service. The new ruling should simplify US GAAP expensing, but remains at odds with commentary from IFRS on the same topic.

Setting an Intelligent Sales Pay Mix Strategy

Setting an appropriate pay mix strategy for your sales compensation plan — the ratio of target total cash compensation that is attributed to base salary vs. target incentives — is a common pain point for growing companies aiming to maintain competitive sales compensation structures. This article explores common pitfalls and steps to take to address issues.

Executive Pay Not Immune to Proposed Tax Reforms

On February 21, 2014, House Ways and Means Committee Chairman Dave Camp introduced a discussion draft/blueprint of legislation (Tax Reform Act of 2014) that would cover a wide range of tax areas. It is very unlikely that all the items in the discussion draft will make their way into legislation, but there are several items in the discussion draft related to executive compensation worth monitoring.

Europe Leads in Workforce Stability

EMEA Market Insights - Technology Edition

In a year when global employee turnover rates held steady across the technology sector, Radford's EMEA team dug deeper to look at turnover rates by region; discovering that turnover in Europe lagged well behind the rest of the globe.

Avoiding a One-Size-Fits-All Equity Strategy

EMEA Market Insights - Life Sciences Edition

As more and more life sciences companies consider the adoption of full-value share awards and performance-based equity, new Radford research explores how equity strategy shifts by corporate stage of development.

ISS Releases Updated Industry Burn Rate Cap Tables for 2014

Institutional Shareholder Services (ISS) recently released an updated set of industry burn rate caps for 2014. The new caps, effective for shareholder meetings on or after February 1, cover both Russell 3000 and non-Russell 3000 companies in all industries.

ISS Announces Changes to Key Global Corporate Governance Policies

Institutional Shareholder Services (ISS) has announced several important changes to its US and European policies governing executive compensation. Among other results, these changes could alter future testing outcomes under the CEO pay-for-performance assessment system currently used by ISS.

SEC Publishes Proposed Rules for the Implementation of CEO to Worker Pay Ratio

On September 18, 2013, the SEC Commission voted, by a 3 to 2 margin, to move forward with proposed rules governing the disclosure of CEO to worker pay ratios under the Dodd-Frank Act. The proposed rules now enter a public comment period, and move companies much closer to potential disclosures in this area.

Proxy Season 2013: A Renewed Focus on Disclosure

A continued focus on key governance issues like pay-for-performance alignment and Say-on-Pay results has dramatically altered the environment in which we all operate, and companies will need to adjust accordingly. With proxy season 2013 arriving, Radford examines the current mix of internal and external issues influencing CD&A disclosure practices.

ISS Releases Updated Industry Burn Rate Cap Tables for 2013

Institutional Shareholder Services (ISS) recently released an updated set of industry burn rate caps for 2013. The new caps, effective for shareholder meetings on or after February 1, cover both Russell 3000 and non-Russell 3000 companies in all industries

Institutional Shareholder Services (ISS) Clarifies Its New Approach for Selecting Pay-for-Performance Peers

Institutional Shareholder Services (ISS) recently announced significant changes to the peer group selection process it uses for CEO pay-for-performance assessments. Typically, an announcement of this nature requires careful and measured consideration. However, in this case, there is an added sense of urgency, as ISS is providing companies with the opportunity to pre-submit their FY 2012 peer group.

ISS Announces Potential Changes to its Say-on-Pay Policies for 2013

Institutional Shareholder Services (ISS) has announced several potential changes to its US policies governing recommendations for Management Say-on-Pay proposals. The new policies, if implemented, could serve to significantly alter future testing outcomes under the CEO pay-for-performance assessment system introduced by ISS last year.

Nasdaq and NYSE Markets Publish Proposed Rules to Address New SEC Independence Requirements

In response to the SEC's publication of final regulations governing Compensation Committee and compensation adviser independence, both the Nasdaq and NYSE markets published proposed listing requirements to address the new SEC rules. With proposed requirements now available, companies can move one step closer to implementing their own independence policies. A summary of the Nasdaq rules is available here, and a summary of the NYSE rules can be found here.

Mobilizing the Right Team to Respond to a Negative Say-on-Pay Recommendation

While there are no shortcuts for avoiding several days of hard work when proxy advisors send bad news your way, responding to their criticism through additional SEC disclosures and direct shareholder engagement can be a focused process if companies mobilize the right forces at the right time in the right manner.

New JOBS Act Legislation Eases the Path to an IPO

An Overview of the Compensation and Governance Implications of the Jumpstart Our Business Startups (JOBS) Act of 2012

When President Obama signed the JOBS Act into law on April 5, his signature set in motion one of the most significant overhauls of the US initial public offering (IPO) system in recent history. With strong bipartisan support, this new bill creates a more streamlined approach for on-ramping companies through the IPO pipeline.

EMEA Market Insight: Top Paying Technology Jobs in Germany

As a leading reward consultancy in the Technology and Life Science sectors, Radford monitors the main trends for key jobs in the Technology sector. With reference to our compensation data from nearly 340 technology companies in Germany we present a sample of our data which may be of interest to HR and Reward managers across the sector.

Unlocking ISS' New CEO Pay for Performance Assessments

On the heels of making voting policy changes for 2012, Institutional Shareholder Services (ISS) also announced significant updates to its process for assessing the alignment of CEO pay and performance. Having reviewed the changes, Radford Consulting shares its view on how the tests are built and how they can be modeled.

ISS Releases New Burn Rate Cap Tables for 2012

Institutional Shareholder Services (ISS) recently released an updated set of industry burn rate caps for 2012. The new caps, effective for shareholder meetings on or after February 1, cover both Russell 3000 and non-Russell 3000 companies in all industries.

EMEA Market Insight: EMEA Technology Sector Reward Data

2012 is upon us and brings with it important decisions on remuneration levels for the coming year. To help you, we have a portfolio of tools at your disposal to assess remuneration levels, levelling, and pay mix. This Market Insight includes examples of how Radford tools can help you make key decisions and cut costs in your organization.

ISS Corporate Governance Updates for 2012

An Overview of Key ISS Policy Changes for US-Based Companies Ahead of Proxy Season

Institutional Shareholder Services (ISS) has released its final set of corporate governance policies for 2012, and the latest round of updates focus on fine-tuning CEO pay-for-performance tests and incorporating say-on-pay results into future recommendations.

The Final Tally: 2011 Say-On-Pay Results and Trends

In this Radford Review, the Radford Consulting team addresses lessons from the last proxy season in great detail, examining overall say-on-pay voting trends and specific results in the high technology and life sciences sectors.

Pre-IPO/Venture-Backed Pay Planning

Getting Your Startup's Compensation House in Order

For budget-constrained startup companies, wherein payroll is often the single largest expense line, it is imperative that limited resources like cash and company shares be managed effectively. This Radford Review is meant to provide a compensation roadmap for private, venture-backed companies oriented toward a sale of the company or for an initial public offering (IPO), and is based on Radford's extensive consulting experience assisting clients as they navigate the startup path.

Roadmap to an Initial Public Offering

Executive Compensation Fundamentals for Venture-Backed and Pre-IPO Companies in Technology and Life Sciences

This article examines several executive compensation fundamentals for pre-IPO firms in the technology and life sciences industries — topics including the formation of an over-arching compensation philosophy, developing peer groups, and how best to balance compensation risks and rewards ahead of an IPO. Most importantly, we take a long-term view toward each of these issues, focusing specifically on the transitional needs of private companies as they face increasingly overextended run-ups to initial public offerings.

Key Considerations for the Valuation of Stock Options at Pre-IPO and Newly Public Companies

Key Considerations for Determining the Fair Value of Stock Options

Valuing stock options at pre-IPO and recently public companies is difficult task, and it involves considering a large number of diverse valuation methodologies. While mature companies have years of actual employee behavior to draw on when determining option valuation inputs, pre-IPO and newly public companies have no such data and are at distinct disadvantage as a result. To address these issues, we consider the pros and cons of several potential option valuation methodologies, with a particular eye towards expected life and expected volatility.

Early Reactions to Say on Pay Recommendations from ISS

This Radford Alert provides a summary of early ISS voting recommendations, discusses some of the unique say-on-pay challenges faced by technology and life sciences companies, and considers the various pay-for-performance "cures" currently provided by ISS.

Say on Pay and Its Impact

This Radford Review focuses on the near-term considerations for companies approaching their first shareholder say on pay voting cycle, and the potential changes set into motion in the wake of those votes.

SEC Adopts Say on Pay Rules

The SEC has adopted final rules on say on pay (SOP) and the frequency of SOP shareholder votes. A non-binding advisory vote on executive compensation is required by the Dodd-Frank Act. Companies must also include a proposal asking shareholders to vote on how often they would like to vote on SOP. Choices are annual, every other year or once every three years. This Radford Alert reviews the rules and their implications.

Performance-Based Equity Practices Within Large Biopharma

This Radford White Paper examines current trends in performance-based equity among larger biotechnology firms, provides an examination of the critical factors in adopting performance-based plans and presents Radford's perspective on the issues that must be addressed to maximize the effectiveness of these plans within a total rewards strategy.

ISS' 2011 Burn Rate Limits

In follow-up to the November release of its 2011 Policy Updates, Institutional Shareholder Services (ISS) issued its updated burn rate tables. This Radford Alert provides the new burn rates for technology and life sciences companies.

2011 ISS Policy Updates

Institutional Shareholder Services, Inc. (ISS) released its US Corporate Governance Policy – 2011 Updates. The updates related to ISS's policies on Management Say on Pay (MSOP) proposal frequency, Problematic Pay Practices policy, and equity-based compensation plans are summarized within this Radford Alert.

Dodd-Frank Act: The Importance of Putting CEO Pay Multiples into Context

Radford research shows that focusing solely on the CEO pay ratio itself can cloud the reality of the business and industry drivers behind it. This white paper covers the results of our research and provides companies a set of guidelines for beginning the process of calculating and communicating the ratio.

RiskMetrics Group Launches New Governance Rating Indicators (GRId)

On March 17, RiskMetrics Group announced a new development in their evaluation of public companies' governance and compensation arrangements. The new Governance Risk Indicators (GRId) has been designed both to apply much more broadly and to drill into considerably more detail on key areas of concern than the current Governance Quotient (CGQ).

New England 100 Executive Compensation Practices

In the fall of 2009, Radford analyzed proxy data for the 48 largest technology and 52 largest life sciences companies (by revenue) headquartered in New England to examine executive pay practices. This summary covers the highlights of those findings, as well as comparisons to previous fiscal year pay practices.

Silicon Valley 100 Executive Compensation Practices

In the fall of 2009, Radford analyzed proxy data for 100 of the largest technology companies headquartered in Silicon Valley to examine executive pay increases. This executive summary covers the highlights of those findings, as well as comparisons to previous fiscal year pay practices.

SEC Adds New Compensation Disclosures Requirements

On December 16, 2009 the Securities Exchange Commission (SEC) expanded the disclosure rules it originally laid down several years ago, adopting several new regulations related to executive compensation and board structure. This Radford Alert provides an overview of the new rules, as well as our perspective on the impact to clients.

Risk Metrics Group Updates Annual Proxy Voting Policies and Processes for 2010

On November 19, 2009, proxy advisor Risk Metrics Group (RMG), formerly Institutional Shareholder Services, released its annual US Corporate Governance Policy Update, which included significant changes in target equity burn rates for companies in the technology and life sciences sectors, as well as revisions to its methods for evaluating certain executive pay practices, and links between that pay and company performance. This Radford Alert provides a brief overview of RMG's policy changes, as well as details on the new equity burn rate targets.

Underwater Option Exchanges: Navigating Through Topic 718 and Type I Through Type IV Accounting

There is a wealth of resources already available adddressing the current underwater stock option environment. Most of this information, including Radford's own ongoing research includes an array of information on our Exchange Portal, focuses on offering an exchange program to employees that allow them to tender their underwater optinos for a specified lower number of at-the-money replacement options. As challenging as designign the tendor offer may be, the subsequent accounting needs equal attention. This summary provides a roadmap for determning the appropriate treatment of modified awrds and associated incremental expense.

SEC Proposed Changes Seek to Enhance Visibility into Compensation Decision Processes

Continuing a multi-year effort to shed light into public company compensation program decision-making, the Security and Exchange Commission (SEC) has announced proposed amendments to its existing compensation disclosure rules. If adopted, these changes will go into effect in next year's proxy. These proposed changes are being announced as the SEC is stepping up its review of company CD&As, and enforcement of the controls set down in the CD&A regulations. This Radford Alert provides a brief overview of the proposed changes, as well as the issues the SEC is scrutinizing within recently filed CD&As.

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Solium Synergy 2014

Location: San Francisco, CA
Speaker(s): Ken Wechsler, Director
Topic(s): A Tale of Two IPOs - Not Always the Yellow Brick Road