Problem
Part I
i. What has happened to executive pay packages since passage of the act?
ii. What is total shareholder return and how is it calculated? Provide an example.
iii. Has there been any impact on long term incentive pay for executives?
iv. Do you feel that passage of Dodd-Frank as regards executive compensation has been effective?
Part II
Some of the topics that you should examine include:
i. Compensation plans (for both the CEO and board members-be sure to look for differences between fixed and incentive compensation)
ii. Board composition (e.g., board size, insiders and outsiders, interlocking directorates, functional experience, how many active CEOs, how many retired CEOs, what is the demographic makeup, and age diversity)
iii. Ownership concentration-how much of the firm's outstanding stock is owned by institutions, individuals, insiders? How many large-block shareholders are there (owners of 5 percent or more)?
iv. Does the firm utilize a dual structure for the CEO and chair of the board?
v. Is there a lead director who is not an officer of the company?
vi. Activities by activist shareholders regarding corporate governance issues of concern
vii. Are there any managerial defense tactics employed by the firm? For example, what does it take for a shareholder proposal to come to a vote and be adopted?
viii. Does the firm have a code of ethical conduct? If so, what does it contain?