An Antidote to Excess


A recent study by Institutional Shareholder Services found CEO succession planning, which many public company boards have adopted over the past three years, to be a key practice in reducing excessive executive and golden parachute payments. The study suggests that without a succession plan in place, a board can become desperate to hire an outsider and is then more willing to offer a “candy store of incentives.”

Index Group

Percentage of companies with a board-approved CEO succession plan, Jan. 2004 Percentage of companies with a board-approved CEO succession plan, Jan. 2007 Percentage- point change
(rounded)
CGQ Universe 1 2% 28% +26
Russell 3000 12% 64% +52
S&P 400 38% 90% +52
S&P 500 65% 96%
+32
S&P 600 20% 82%
+62
Grand Total
14% 54% +39


1. 5,000 public companies tracked by ISS’ Corporate Governance Quotient

Source: Exit Pay: Best Practices in Practice, The ISS Center for Corporate Governance, 2007, www.issproxy.com/pdf/ExitPay2007.pdf.

SPONSORED REPORT

2019 State of Financial Reporting Survey

We surveyed nearly 600 finance and accounting professionals on their month-end close and reporting processes. See the results.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.