Episode 11: Equity Usage Trends

 Summary

This episode of the EC Minute looks at equity usage trends between 2016 and 2018 at S&P 500 and Russell 3000 (excluding S&P 500) companies. In particular, this episode reviews the ISS means (averages) and benchmarks (caps) set out for S&P 500 and Russell 3000 (non-S&P 500) companies for 2016, 2017 and 2018. The episode looks at the overall trends with respect to equity use averages (means) and benchmarks (caps) with respect to the two groups of companies over the period 2016-2018.

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Episode 10: Measuring Equity Usage

 Summary

This episode of the EC Minute looks at how companies can measure equity usage. Specifically, the episode looks at two common ways to measure equity usage, Run Rate and Burn Rate. Run Rate and Burn Rate are typically calculated on a gross basis and do not reflect forfeitures and any other events that would negatively impact the number of shares granted as equity awards during a year.

Additionally, the episode looks at a way to measure the economic value of equity granted using Exequity’s Equity Value Rate (EVR) measure. EVR can provide additional insight into a company’s equity usage especially when compared against labor competitors with larger market caps.

Link to Exequity’s 2018 Equity Usage Calculator

Click here to download Exequity’s 2018 Equity Usage Calculator in Excel format.

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Episode 9: May 2018 Letters from Members of U.S. Senate Committee to Proxy Advisors

Summary

This episode of the EC Minute looks at the May 2018 letters to ISS and Glass Lewis written by Senators who are members of the U.S. Senate Banking, Housing, and Urban Affairs Committee. The episode also offers some of the background that explains why these letters were sent. Congress appears to be investigating whether proxy advisory firms should be registered with the SEC (if they are not already) and whether they should be required to provide more information concerning their proxy guidelines, require adequate staffing, permit companies to review and comment on proxy advisory firms’ reports, and whether they need to have rules addressing conflicts of interest for such firms.

Links to Materials Referenced

Link to Congress.gov website where the report and text of H.R. 4015, the Corporate Governance Reform and Transparency Act of 2017, December 7, 2017 can be found:

https://www.congress.gov/bill/115th-congress/house-bill/4015/text

The GAO’s reports can be found at:

The SEC Staff Legal Bulletin No. 20, Proxy Voting: Proxy Voting Responsibilities of Investment Advisers and Availability of Exemptions from the Proxy Rules for Proxy Advisory Firms (June 30, 2014) can be found at:

https://www.sec.gov/interps/legal/cfslb20.htm

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Click here to download the slides used in this episode.