Tags |
|
|
Links |
|
|
Casual Articles - How the New SEC Regs Affect Compensation Committees
Each and every person in this world must have at least once thought about opening some sort of business to increase his or her income. No matter if you are thinking about opening a small family business or a larger company, you cannot do anything but obey the business laws! If you don’t, you and your business can get into serious trouble!In case you are under the impression that you need to be a graduate of a business law college or have a business law major in order to understand and use some of the basic ideas of small business law and corporate business law, you are making a very big mistake. Perhaps you have heard form the news and the headlines that employment law for business is one of the most dangerous fields, as a person can easily break the business laws and regulations.The least any business man should kno
What, then, will be the new role of the Compensation Committee in the dawn of the proposed SEC rules? As the emphasis on the Compensation Committee has intensified as a result of Sarbanes-Oxley, the proposed SEC rules, and similar regulations, Committees are being reconstituted, and are reevaluating their role within the public companies they serve. Generally speaking, the overall role of the Compensation Committee is to serve in an advisory role to the Board of Directors, both in strategic a
Companies that sell reinforcing steel bars (or concrete bars - also known as Rebar) have seen a boom in recent years. Many cities have seen a surge in residential and commercial real estate projects, which in turn has increased the demand for Rebar.Companies that sell, cut and bend Rebar have profited nicely from this growth – however, they have also faced a common problem in the industry. The problem is tight cash flow. Basically, they sell the Rebar to customers (e.g. builders, contractors) at good prices. These customers usually pay their invoices in 30 to 60 days. In the meantime, the Rebar company must wait to get paid while covering all supplier, payroll and rent expenses. Many times, this is not sustainable. Either the company stops growing, or worse, it starts missing key supplier or employee payments.Going t
In the past, the specific numerical targets have not been provided, even though the performance measures have been identified, the rationale being that this would offer confidential, strategic business information to competitors. Some have argued, however, that by not stating the exact performance requirements up front, the Committee has left some “wiggle room” that will allow them to modify the requirements later to levels below the original expectations, and thereby granting awards when they are not truly deserved. Until the SEC issues its final regulations, it will be interesting to see how the Compensation Committees handle this issue, which in effect requires them to provide sufficient information to shareholders without disclosing confidential business information.
It is interesting to note, though, that the SEC regulations only cover a small percentage of employers that exist in the United States. While SEC and other Federal regulations cover publicly-traded firms, and IRS regulations (Section 4958) cover not-for-profit organizations, the overwhelming majority of firms -- privately-held companies -- are not subject to such intense scrutiny. Currently, the only instances where executive compensation in a privately-held firm is subject to examination are when excessive compensation triggers tax liabilities or minority shareholder actions. Otherwise, privately-held firms fly under the radar screen with regard to executive compensation. Lately, however, many privately-held companies recognize that they cannot stay hidden for much longer, and are embracing the concepts that the regulators have imposed relative to proper governance, reasonable pay, and arms-length dealings.
What, then, will be the new role of the Compensation Committee in the dawn of the proposed SEC rules? As the emphasis on the Compensation Committee has intensified as a result of Sarbanes-Oxley, the proposed SEC rules, and similar regulations, Committees are being reconstituted, and are reevaluating their role within the public companies they serve. Generally speaking, the overall role of the Compensation Committee is to serve in an advisory role to the Board of Directors, both in strategic an
Business Mail Forwarding, have you heard of it before? If not and you are a small to medium sized business owner, you are urged to take the time to familiarize yourself with business mail forwarding. It might just be the extra push that your business needs to begin seeing profits.Business mail forwarding is a service that is offered to many business owners. It involves giving business owners an alternative address, which can also be used as their business mailing address. If you choose to subscribe to a business mail forwarding service, you will give your customers or clients a new, alternative mailing address. Should they need to send you anything, such as an order or a payment, their mailings will be sent directly to your alternative business address. At that address, the individuals or company in charge of handing you
In the past, the specific numerical targets have not been provided, even though the performance measures have been identified, the rationale being that this would offer confidential, strategic business information to competitors. Some have argued, however, that by not stating the exact performance requirements up front, the Committee has left some “wiggle room” that will allow them to modify the requirements later to levels below the original expectations, and thereby granting awards when they are not truly deserved. Until the SEC issues its final regulations, it will be interesting to see how the Compensation Committees handle this issue, which in effect requires them to provide sufficient information to shareholders without disclosing confidential business information.
It is interesting to note, though, that the SEC regulations only cover a small percentage of employers that exist in the United States. While SEC and other Federal regulations cover publicly-traded firms, and IRS regulations (Section 4958) cover not-for-profit organizations, the overwhelming majority of firms -- privately-held companies -- are not subject to such intense scrutiny. Currently, the only instances where executive compensation in a privately-held firm is subject to examination are when excessive compensation triggers tax liabilities or minority shareholder actions. Otherwise, privately-held firms fly under the radar screen with regard to executive compensation. Lately, however, many privately-held companies recognize that they cannot stay hidden for much longer, and are embracing the concepts that the regulators have imposed relative to proper governance, reasonable pay, and arms-length dealings.
What, then, will be the new role of the Compensation Committee in the dawn of the proposed SEC rules? As the emphasis on the Compensation Committee has intensified as a result of Sarbanes-Oxley, the proposed SEC rules, and similar regulations, Committees are being reconstituted, and are reevaluating their role within the public companies they serve. Generally speaking, the overall role of the Compensation Committee is to serve in an advisory role to the Board of Directors, both in strategic a
For many people, the possibility of selling goods online appears fraught with difficulties. Firstly, you need to locate a product, store inventory, organise a good shipment or carrier company and so forth. But what if you could become a successful online retailer without having to worry about those problems?The answer is that you can…a simple type of retail called drop shipping. Let us take a look at the pros and cons of this method of retailing.Drop shipping is the name given to the retail method where you sell a product at a price of your choice but do not keep the products in stock. You collect the payment from the buyer and pass the order onto the supplier who despatches the goods on your behalf. You pay the wholesale price to the supplier and the difference between that and what you have been paid by the buyer i
It is interesting to note, though, that the SEC regulations only cover a small percentage of employers that exist in the United States. While SEC and other Federal regulations cover publicly-traded firms, and IRS regulations (Section 4958) cover not-for-profit organizations, the overwhelming majority of firms -- privately-held companies -- are not subject to such intense scrutiny. Currently, the only instances where executive compensation in a privately-held firm is subject to examination are when excessive compensation triggers tax liabilities or minority shareholder actions. Otherwise, privately-held firms fly under the radar screen with regard to executive compensation. Lately, however, many privately-held companies recognize that they cannot stay hidden for much longer, and are embracing the concepts that the regulators have imposed relative to proper governance, reasonable pay, and arms-length dealings.
What, then, will be the new role of the Compensation Committee in the dawn of the proposed SEC rules? As the emphasis on the Compensation Committee has intensified as a result of Sarbanes-Oxley, the proposed SEC rules, and similar regulations, Committees are being reconstituted, and are reevaluating their role within the public companies they serve. Generally speaking, the overall role of the Compensation Committee is to serve in an advisory role to the Board of Directors, both in strategic a
For every person who needs to organize a conference there is a time where they must decide where to hold their conference. The choice of city is dependant on a variety of different factors including where there is sufficient accommodation for all attendees as well as the ease with which the majority of attendees can reach the destination. Within England there are many different areas that offer conference venues, but one of the most developed is Birmingham. The level of development that the city enjoys means that a large number of facilities are on offer to people who choose to attend conferences in the area. The state of the city’s infrastructure means that once people are in the city it is easy to reach their conference venue.The city of Birmingham has a large range of activities to offer conference attendees so that the
What, then, will be the new role of the Compensation Committee in the dawn of the proposed SEC rules? As the emphasis on the Compensation Committee has intensified as a result of Sarbanes-Oxley, the proposed SEC rules, and similar regulations, Committees are being reconstituted, and are reevaluating their role within the public companies they serve. Generally speaking, the overall role of the Compensation Committee is to serve in an advisory role to the Board of Directors, both in strategic a
Over time, concrete sidewalks, driveways, parking lots, and other structures will begin to show their age. Cracks, uneven pavement, crumbling, and loose joints are just a few of the visible problems that will occur. This is due to water damage, stress and strain, and the movement of the earth. Cleaning and resurfacing concrete structures is important, especially in areas that receive a lot of rain. Using water blasters to do concrete repair restoration are becoming more popular for many reasons. Since concrete is coated with a water resistant substance that will eventually break down, water blasting can remove any remaining coating so that new coatings can be applied.Another reason water blasting for concrete repair restoration is so popular is that it can pinpoint loose joints using water pressure to reveal broken pieces.
What, then, will be the new role of the Compensation Committee in the dawn of the proposed SEC rules? As the emphasis on the Compensation Committee has intensified as a result of Sarbanes-Oxley, the proposed SEC rules, and similar regulations, Committees are being reconstituted, and are reevaluating their role within the public companies they serve. Generally speaking, the overall role of the Compensation Committee is to serve in an advisory role to the Board of Directors, both in strategic and administrative capacities.
· Strategically, the Committee will consider how the achievement of the overall goals and objectives of the Company can be supported by adopting specific compensation plans that will drive the intended performance.
· Administratively, the Committee will authorize the undertaking of the required competitive studies to ensure that the Company’s executive compensation programs (covering base salary programs, short- and longer-term incentives, as well as supplemental benefits and perquisites) are competitive within the market.
In its role, the Compensation Committee recommends executive compensation programs for Board approval, and makes recommendations to the Board relative to the executive compensation programs for the company’s top executives. The intent of the executive compensation programs is driven by the company’s compensation philosophy, established in conjunction with top management, which represents the organization’s position on executive pay relative to an appropriate peer group. It is the Committee’s responsibility to ensure that the compensation philosophy properly addresses the company’s business goals and objectives, and that the compensation programs are consistent with this philosophy, so that the appropriate financial motivation is present to focus each executive’s attention on goal achievement.
With the advent of Sarbanes-Oxley, Boards and Compensation Committees are being more diligent in their search for qualified members to serve. These new members bring a level of credibility and comfort to the process, as many possess special knowledge and expertise to assist in making appropriate decisions for the benefit of the organization. The abilities of Board and Committee members are complemented by the use of independent advisors and consultants (attorneys, accountants, compensation professionals), engaging them directly to provide objective counsel on matters dealing with compensation.
Most notably, the new roles of the Compensation Committee will be to:
1. Provide the necessary transparency required by the regulations through proper disclosures within the Company’s SEC filings.
2. Recommend for Board approval the specific performance criteria and annual and longer-term performance targets for awards under the executive compensation program that will drive desired business
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.casualarticles.com/article/1024/casualarticles-How-the-New-SEC-Regs-Affect-Compensation-Committees.html">How the New SEC Regs Affect Compensation Committees</a>
BB link (for phorums):
[url=http://www.casualarticles.com/article/1024/casualarticles-How-the-New-SEC-Regs-Affect-Compensation-Committees.html]How the New SEC Regs Affect Compensation Committees[/url]
Related Articles:
How to Answer The Top 10 Interview Questions
Sustainable Marketing - 4 Ways Your Stationery Kills The Environment (Second of 3 Articles)
Business Gift Certificates - How to Create Your Own
Bookmark it:
|