The Securities and Exchange Commission’s Investor Advisory Committee voted to ask the SEC to investigate whether public companies should be required to disclose information around the idea of human capital management. Analysis is underway. While it won’t impact you this proxy season, here’s what you need to know.
The current state of M&A activity contradicts predictions made in 2018. Back in December, countless articles predicted a slowing economy would lead to a slow down in M&A but as recession fears have receded, M&A has continued its hot streak.
Like your favorite suit, sustainability reporting is not new, but it looks good on your organization. Ninety-five percent of companies in the Global 250 issue a sustainability report, an issuance that is now widely considered a best practice.
Corporate fascination with M&A hasn’t eroded in 2019, and health care is a major area in the M&A game this year. Yet, the path to growth, according to this group of CEOs, is not through M&A.
2019 could be the year of the human, at least where shareholder proposals are concerned. Proposals this year run the gamut, from talent and diversity, to battling plastics and opioids. A snapshot of four human issues making the rounds at annual meetings.
Expect the pace of private equity-driven healthcare M&A to continue due to available capital and plenty of opportunities across a broad industry.
One piece of legislation from the Dodd-Frank Act that concerned executives required companies to disclose the ratio of CEO pay to the median employee. Last year was the first year for companies to report this metric. An analysis on the first year of pay ratio disclosures looks at the fallout from last year, implications of the rule, how most companies measured median pay, and what companies should do to prepare to keep the spotlight away in 2019.
Another proxy season is underway—leaders beware. Although the usual concerns of corporate governance, executive compensation and regulatory disclosures abound, new, specific worries sit under each of those umbrellas. Under compensation, one proxy advisory firm has a new way to evaluate compensation metrics. Within the disclosure realm, the optics of pay ratio disclosure will continue to create flashy headlines in 2019. Approach with caution.
Proxy season is often a showcase of the haves and have nots in the governance realm, with cards stacked mostly in corporations’ favor. Meet the universal proxy ballot, an idea that would level the proxy playing field. Although it’s currently a fledgling idea, watch for this cause to gain momentum.
Heads up! Your company has been targeted for a takeover, and senior leadership needs to handle with grace and ideally, limited negative media. How can the board position the company well with multiple sets of internal forecasts? And how can the board whittle them down to one, defensible forecast before a lawsuit hits?