TheCorporateCounsel.net

December 7, 2016

Corp Fin Director Keith Higgins to Leave!

Yesterday, the SEC announced that Corp Fin Director Keith Higgins is leaving in early January. I am happy for Keith – sad for the rest of us. Keith did an amazing job under tough circumstances. For example, getting the “disclosure effectiveness” project off the ground was a huge challenge. Having seen the launch of the “aircraft carrier” up close, I know how difficult it is to engage in comprehensive reform. Directors never get the time to achieve their goals these days, as Congress gives them plenty to do. I’m sure we would have even seen more change during Keith’s tenure if he was given the leash.

And Keith is among the best speakers out there. His wit never dimmed, even wearing the “Gov” mantle…I’m glad that Keith got this rousing standing “O” at the ABA meeting last month…

Deputy Director Shelley Parratt will serve as Acting Director as she did during the last transition…

Gender Diversity: Smaller Company Boards Lag

This Equilar study notes that smaller companies lag the S&P 500 when it comes to gender diversity. Only 1.4% of S&P 500 boards of directors in 2016 failed to include at least one woman, which decreased from 11.6% in 2012. In contrast, 23.8% of Russell 3000 companies had all-male boards.

The diversity gap also shows up in board recruitment. Smaller company boards often serve as the first stop on the path to large cap directorships, but Russell 3000 companies lag their larger peers in the percentage of first time directors who are female:

In fiscal 2015, 1,155 directors joined Russell 3000 boards that had never served on any public company board. Of these directors, only 15% were female. Meanwhile, in the S&P 500, of newly elected directors who never served on an S&P 500 or Russell 3000 board, 25.5% were women in 2015.

Fewer women first-time directors at smaller companies could adversely affect the pipeline for large cap positions.

It’s Done: 2017 Executive Compensation Disclosure Treatise – With “Pay Ratio” Chapter

We just wrapped up Lynn, Borges & Romanek’s “2017 Executive Compensation Disclosure Treatise & Reporting Guide” — and it’s headed to the printers. This edition has a major update to the key chapter on the new SEC’s pay ratio rules & more! All of the chapters have been posted in our Treatise portal.

How to Order a Hard-Copy: Remember that a hard copy of the 2017 Treatise is not part of a CompensationStandards.com membership so it must be purchased separately. Act now as this will ensure delivery of this 1600-page comprehensive Treatise soon after it’s done being printed. Here’s the “Detailed Table of Contents” listing the topics so you can get a sense of the Treatise’s practical nature. Order Now.

Broc Romanek