| Vol. 1 | Issue. 1 | July 2011 |
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| Welcome to the "Executive Pay Watch" E-Newsletter | | As Farient Advisors continues to lead the way in independent executive compensation and performance consulting, this newsletter will keep corporate boards, compensation committees, senior management and human resource executives up to date on essential industry news and trends. We will cover a variety of topics from corporate performance to executive compensation, compensation committees, regulatory shifts, investor sentiments and our firm's latest activities. | |
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 | In her "Executive Pay Watch" blog, Robin A. Ferracone explains that even a CEO's $1 a year salary can leave compensation committees exposed to criticism for paying "no matter what" vs. paying for performance. |  |
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 | Robin A. Ferracone provides expert commentary on why Silicon Valley's top CEOs got a hefty bump in their paychecks for 2010 in the San Jose Mercury News article, "Silicon Valley's Bosses Make Big Bucks." | |
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| Meet The Team | 
Robin's Full Profile |
Robin A. Ferracone
Founder & Executive Chair
What are some of the biggest challenges in executive compensation today?
Legislation. Shareholders are becoming more vocal and want to understand how pay and performance are aligned. It is more critical than ever for boards of directors to communicate clearly and frequently to shareholders how they are determining total compensation for CEOs and named executive officers. With Dodd-Frank in place for just shy of one year, a lack of communication, disclosure and transparency into pay programs is guaranteed to put compensation committee members in the hot seat.
How do you unwind after a long work week?
Going home and spending time with my husband, Stewart, and my two cats, Chloe and Polo.
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Gary's Full Profile |
Gary C. Hourihan
Senior Vice President
What are some of the biggest challenges in executive compensation today?
Compensation committees have a challenging job - compensation chairmen in particular. They need to have a good working knowledge and understanding of executive compensation, be skilled in political jujitsu, and have enough political savvy to win a Chicago mayoral election.
Compensation committees need to make decisions that are not always popular with stakeholders, and Dodd-Frank has put them under the microscope just like Sarbanes-Oxley did for audit committees. Since all eyes are on compensation committees, members need to exercise more due diligence around the compensation consultants they hire to ensure the board is acting in the best interests of shareholders for any and all matters concerning executive compensation.
How do you unwind after a long work week?
Playing golf, traveling (I just returned from the Arctic Circle) and walking my West Highland White Terrier on the beach near my home.
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Farient Advisors, LLC
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We are an independent consulting firm that helps clients make performance-enhancing and defensible compensation decisions in the best interests of their shareholders.
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