Compensation: Hot Topics

In Person  |  October 31, 2024  |  11:30 AM - 1:30 PM CDT  |  The Woodlands, TX

We gathered in the Woodlands at ChampionX Headquarters, where our panel discussed the latest hot topics and trends in compensation.

This discussion centered around key compensation and governance issues that corporate boards and compensation committees face today. Panelists explored topics such as the evolving role of clawback policies, the influence of shareholder advisory firms like ISS and Glass Lewis, the impact of regulatory changes on non-compete agreements, and best practices for setting performance goals and succession planning. They also examined the political and economic forces shaping executive compensation and governance strategies.

A recurring theme was the need for compensation committees to be proactive, data-driven, and shareholder-focused while ensuring executive incentives align with long-term corporate strategy and performance. The conversation also highlighted the increasing complexities in managing compensation structures amid mergers and acquisitions (M&A), changing regulatory landscapes, and growing stakeholder expectations.

A special thank you to Gail Stewart, our lead panelist, for skillfully guiding this dynamic discussion, and to our panelists, David Bixby, Mark McCollum, and Julie Robertson, for sharing their invaluable expertise and experiences with us.

We also want to extend our appreciation to Soma Somasundaram and John Breed of ChampionX for hosting us, making it a memorable event.

Key Topics Covered

• Clawback Policies & Compliance: Companies are largely adhering to SEC requirements, with limited expansion beyond regulatory mandates.
• Performance Metrics & Executive Pay: Effective compensation structures align incentives with shareholder value while balancing short- and long-term goals.
• Regulatory & M&A Impacts on Compensation: Peer group benchmarking and performance targets must adapt to industry consolidation and shifting regulations.
• Succession Planning & Retention: Proactive leadership development and internal talent pipelines are crucial for long-term corporate stability.
• Evolving ESG & Political Pressures: Compensation committees are navigating shifting expectations around ESG incentives and regulatory uncertainty.
• Compensation Trends in Private & Nonprofit Boards: Governance and pay structures differ significantly from public companies, requiring tailored incentive strategies.

Key Takeaways

• Clawback Policies: Most companies follow SEC rules, but boards should assess if broader triggers align with shareholder expectations.
• Shareholder Engagement: Direct investor dialogue should guide compensation decisions, not just proxy advisor recommendations.
• Performance Metrics & Incentives: Compensation should balance financial goals with discretion to reflect market realities.
• M&A & Benchmarking: Industry consolidation and regulations require reassessing peer groups and incentive structures.
• Succession Planning: Boards must actively develop leadership pipelines and retain top talent.
• ESG & Political Shifts: Boards should anticipate evolving ESG expectations and potential regulatory changes.
• Private & Nonprofit Boards: Compensation strategies must align with mission-driven goals and stakeholder needs.

Program Videos

View the complete program playlist, including the following video clips:  

• Expanding Clawbacks & Navigating Non Competes: What Every Compensation Committee Needs to Know

• Shareholder Influence: How Much Should Compensation Committees Defer

• Setting and Achieving Performance Goals in Compensation Plans

• Strategic Succession: Planning The Compensation Committee’s Role

• Navigating Political Shifts, ESG, and Union Insights in Compensation Strategy

• Compensation Strategies for Public, Private, and Nonprofit Boards: Key Trends and Insights

• Hard-Learned Lessons for Today’s Compensation Committees

   

The Power of Perspective: Insights from Attendees

The Power of Perspectives: Hear from Alan Quintero, director at TDIndustries, as he shares his key takeaways from the program.

Program Resources   NACD: Director Compensation Report Compensation Committee Blueprint   Meridian Compensation Partners: 2024 Meridian Corporate Governance and Incentive Design Survey Principles in Addressing the Unexpected Events - How do you prepare for the unpredictable executive compensation?   Panelists   David Bixby Managing Partner, Meridian Compensation Partners, LLC; Director, Bixby Family Foundation and NACD Texas TriCities Chapter David has over 20 years of compensation consulting experience with an emphasis on the assessment and design of executive and director pay programs, compensation strategy and philosophy, pay and performance alignment, and corporate governance... Read Full Bio     Mark McCollum Chair Compensation Committee, Marathon Oil | Chair HR & Compensation Committee, Baylor College of Medicine | Director, Westlake Corporation; Seadrill Limited; St. Luke’s Medical Center. Mark McCollum served as president, CEO, and director for Weatherford International plc, a global oilfield service company operating in over 80 countries and employing over 25,000 people, from April 2017 until June 2020... Read Full Bio     Julie Robertson Director, Patterson-UTI Energy Inc., Seadrill Limited, Superior Energy Services, Inc., EOG Resources Inc, NACD Texas TriCities Chapter Julie Robertson retired as Executive Chairman of Noble Corporation plc in 2021 after having served in various roles of increasing responsibility for over 40 years. She was appointed Chairman of the Board, President and Chief Executive Officer of Noble in January 2018 and previously, she served as Executive Vice President of the company from February 2006 and as Senior Vice President – Administration from July 2001 to February 2006... Read Full Bio     Gail Stewart, NACD.DC Senior Counsel, Baker Botts ; Director, Baylor College of Medicine, Baylor University, Houston Christian High School, River Oaks Baptist School, NACD Texas TriCities Chapter As one of the country's leading executive compensation attorneys, Gail offers far more than legal experience. In addition to four decades of experience handling the complex intersection of federal and state employment law, tax and securities compliance... Read Full Bio