What to Do About Reviewing Outstanding CEO Pay Packages, Contracts and Accumulated Option Gains

Practice Pointers from the Task Force

1. Rolling Back Compensation
   
   
   • Taking from the King: The Mutual Need and Practical Tips for Rolling Back or Modifying Excessive CEO Compensation
     —Eric Keller, Paul Hastings Janofsky & Walker, LLP
   • The Need for the Compensation Committee to Fully Understand the Compensation Arrangements it is Approving
     —Althea Day, Morgan, Lewis & Bockius LLP
   • Using Company-Centric Performance Measurement
     —Althea Day, Morgan, Lewis & Bockius LLP
   • Incorporating Performance and Trends into Compensation Planning
     —Beverly Aisenbrey, Frederic W. Cook & Co.
   • Providing Disclosure of a Corrected Pay Package Calculation
     —Michael Andresino, Posternak Blankstein & Lund LLP
   • Reexamine Circumstances Under Which Compensation May Be Denied or Withheld
     —Anonymous Task Force Member
   • Understanding Shareholders’ "Pay-for-Failure" Complaints
     —IRRC
   • Executive Accountability and Excessive Compensation: A New Test For Director Liability
     —Mark Van Clieaf, MVC Associates International
   • A Sample Tally Sheet – And Analysis of How to Use It
     —Richard Wagner, Strategic Compensation Research Associates (SCRA)
   • A Simple Approach to Understanding How Components of CEO Pay Fit Together
     —Richard Wagner, Strategic Compensation Research Associates (SCRA)
   • Solving the Pay Gap Crisis
     —Matt Ward, Aon Consulting
   • Rethinking Executive Pay: Don’t Create Another Giveaway
     —Claude Johnston, Pearl Meyers & Partners
   • Comprehensive Tally Sheet (Excel Spreadsheet)
     —Matt Ward, Aon Compensation Consulting & Joshua Lurie, eComp Data Services Groups
   • Stealth Compensation - Deferred Compensation
     —Lucian Bebchuk and Jesse Fried
   • Morgan Stanley's 2005 Compensation Committee Report (discussing internal pay equity)
   • Intel's 2004 Compensation Committee Report
   • Model Compensation Committee Report
     —Courtesy of CompensationStandards.com
   • Companies With "Hold 'Til Retirement" Guidelines
     —Robbi Fox, Hewitt Associates
   • $800 Million in CEO Pay - Is That Reasonable?
     —Paul Hodgson, The Corporate Library

2. Contracts
   
   

3. SERPs
   
   

4. Severance and Change in Control
   
   

5. Stock Options
   
   

6. Restricted Stock
   
   

7. Indemnification
   
   
   • Rethinking Indemnification Agreements
     —Phil Koehler, Stradling, Yocca, Carlson & Rauth LLP
   • Recent Remarks on Disgorgement of Compensation
     —Stephen M. Cutler, Director, Division of Enforcement, SEC

Media Articles

[Member/Media/03-inc.htm]

Firm Memos

• "Novel Ways to Structure Pay Packages" - Joe Bartlett, Fish & Richardson LLP (6/23/04)
• "Ninth Circuit Addresses Sarbanes-Oxley Provision for Escrow of Extraordinary Payments in Connection with Investigation of Possible Securities Fraud", Wachtell, Lipton, Rosen & Katz  (5/28/04)
• Lettter to NYSE re: Crisis in Competence Regarding Pay-for-Performance Measurement, MVC International (9/4/03)
• Follow-Up Letter to SEC re: Crisis in Competence Regarding Pay-for-Performance Measurement, MVC International (9/25/03)
• "Comp Committees Put Peer Groups under Microscope," MVC International (11/03)
• "Are boards and CEOs accountable for the right level of work?" MVC Associates International (5/04)