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I look forward to joining Mark Borges, Principal, Compensia and Editor, CompensationStandards.com; Ron Mueller, Partner, Gibson Dunn & Crutcher LLP; and Greg Arnold, Managing Director, Semler Brossy for our upcoming webcast on CompensationStandards.com titled “Executive Compensation & Equity Trends in a Volatile Environment.” The webcast will take place on Tuesday, August 16 from 2:00 to 3:00 pm eastern time. This promises to be a very interesting discussion of the compensation challenges that we are all facing in the midst of volatile financial markets.

As I recently noted in the May-June 2022 issue of The Corporate Executive, for the many companies that utilize equity as a key component of their overall employee, director and executive compensation programs, the current spate of volatile markets can upset carefully laid plans and programs. For the participants in those equity compensation programs, volatile markets can create a whole host of issues that must be carefully considered. In that issue of The Corporate Executive, we address the approach that often rears its ugly head in times of significant market volatility: option repricing. The practice of option repricing has long been disfavored by institutional investors and proxy advisory firms, but companies can find themselves attracted to the approach when stock prices drop for an extended period of time. We also revisit the topic of hedging and pledging of company stock by directors and executives, given how that topic comes into sharper focus when stock prices decline, and we explore some of the issues that market volatility can cause when implementing Rule 10b5-1 plans.

As we continue to face volatile markets, our CompensationStandards.com webcast and The Corporate Executive will provide you with the information and tools that you need to respond to your clients, management and directors. If you are not already a member of CompensationStandards.com with access to all of the great resources available on that site, sign up now and take advantage of our no-risk “100-Day Promise” – during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. The prices for an annual membership increase on September 1st, so act now to lock in the best deal! If you do not subscribe to The Corporate Executive, please email us at sales@ccrcorp.com or call us at 800-737-1271.

– Dave Lynn