California utility Pacific Gas & Electric Company recently published a climate strategy report that highlights a new category of greenhouse gas (GHG) emissions that the company calls Scope 4. According to PG&E, the category accounts for the emissions it enabled its customers to reduce. “As a utility that provides gas and electric service to millions… Continue reading As Companies Grapple with Scope 3, Scope 4 Comes into Play
Tag: ESG
Many New Climate Proposals Flew Too Close to the Sun
The climate-change related shareholder proposals popping up in 2022 proxies are far more prescriptive or “constraining” than the ones BlackRock supported last year, the asset manager said in a report earlier this month, noting they “may not promote long-term shareholder value.” Sources say that’s a key reason many climate proposals have struggled to get the… Continue reading Many New Climate Proposals Flew Too Close to the Sun
Ho-Hum Support for Climate Proposals at Early Meetings
Several climate-related shareholder proposals went to a vote last week at S&P 500 companies, and most of them failed to garner more than 15% of the vote. While it is unusual for first-time proposals to win high levels of support at annual meetings, the focus on environmental issues among investors and proxy advisors had suggested… Continue reading Ho-Hum Support for Climate Proposals at Early Meetings
New Investor Policies ‘Highly Likely’ to Increase Negative Director Votes
State Street Global Advisors’ (SSGA) CEO Cyrus Taraporevala is ramping up expectations for companies to boost disclosures and update strategies on board and employee diversity as well as climate change this year. Taraporevala’s letter to board members on the firm’s 2022 proxy voting agenda, released this month, warns that the firm will vote against directors… Continue reading New Investor Policies ‘Highly Likely’ to Increase Negative Director Votes
This Is the Lowest-Paying Company in America
For years, the debate over whether companies pay wages high enough to keep workers above the poverty levels has grown louder and louder. The fruits debate of this includes increases in minimum wages in many states. Additionally, companies like Amazon.com and Walmart have bumped up their lowest hourly pay in an attempt to address the… Continue reading This Is the Lowest-Paying Company in America
You’ve Got a New CEO. How Soon Will Your CFO Leave?
Boards often devote plenty of time to succession planning and the compensation aspects of the CEO position, but a key piece involves the second in command. Even if the new CEO pick is the right choice, changes at the top can destabilize the C-suite, particularly if the CFO isn’t meshing with the CEO or feels left out of the transition process. Boards are increasingly being advised to develop succession planning processes for the CFO role that mirror the CEO’s succession plan to prepare for various eventualities.
So far this year, 17 CFOs have retired or resigned their positions after the appointment of a new CEO, according to data from public company intelligence provider MyLogIQ. The number was 26 in 2020 and 23 in 2019. The findings underscore the delicate and important dynamic between the two executives that may become strained. New CEOs often implement strategic shifts, particularly if they come from outside the company. Meanwhile, the CFO may have come in second place for the CEO position and could be harboring some bitterness. In addition, general communication and personality conflicts can also be a factor, former CFOs, board members and consultants said.
The Largest Equity Grants of 2020
A year that included both a market recession and a rebound, 2020 saw equity compensation for named executive officers increase by 3.7% at companies in the S&P 500, according to data from public company intelligence provider MyLogIQ.
While median equity comp was up for executives in 2020, financial performance was not. At S&P 500 companies, the median revenue shrank by 0.7% in 2020 compared with 2019, according to data from Farient Advisors. Median earnings per share at S&P 500 companies also decreased in 2020, down 1.3% from 2019, said Eric Hoffman, vice president and leader of information services at Farient.
Nonetheless, Hoffman said he expects equity grants for this year and 2022 to fall in line with the increases of the last several years as companies do their best to retain talent.
Three Factors That Are Organically Driving Board Diversity
The calls to diversify board leadership are justified for many reasons. First, it’s about time corporate leadership started looking like the rest of the employee base and the customers they serve. Second, diverse leadership can have a positive, cascading effect on inclusion and company culture. It has also proven to lead to better decision-making and more profitability.
The value companies are seeing from board diversity is not merely from the presence of a woman or person of color. Today’s newest board members bring different skill sets and commit more time to the job. More than any regulations, these needs are going to help improve representation on corporate boards in the years to come.
Friso van der Oord, senior vice president at the National Association for Corporate Directors, told Fortune that board turnover has gone up lately and he expects it to increase due the urgent need for board members with more free time and wider-ranging skills.
The emergence of ESG has also come through in recent board appointments, van der Oord shared. NACD analysis of MyLogIQ data found that the presence of board members with ESG backgrounds has doubled since 2018, from 6% to 12%, and HR or human capital nearly has as well, growing from 6% to 11% in their presence on boards. Those with technology expertise increased from 34% to 43%.