Is a CEO Worth $200 Million? Shareholders at Rail Giant Think So

“It’s someone saying: ‘I can add billions of dollars in value, and for that I want to be paid extremely well,’” said Alan Johnson, managing director of executive compensation consulting firm Johnson Associates Inc. “You don’t see this very often at all. Just like a sports figure, if CEOs believe they’re worth something there’s no…

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Och-Ziff’s 10-Year Deal Sets New Bar for Staff Retention

Levin’s large pay package comes as compensation has dropped in the hedge fund industry and firms narrow in on paying for performance, says Alan Johnson, managing director of compensation consultancy Johnson Associates. “Pay has come down meaningfully. People are differentiating better,” he says. “People who perform continue to stay where they are.” FundFire / February…

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Boards Cut Discretion From Comp Plans to Soothe Investors

According to Alan Johnson, managing director and founder of compensation consulting boutique Johnson Associates, some boards have moved to reduce discretion in bonus plans in order to appease investors and proxy advisors. “There’s this tension in the marketplace. A lot of it’s driven by ISS and Glass Lewis,” he says. “They hate discretion.” Agenda / February…

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Deutsche Bank Woes Add to Wall Street Bonus Gloom

One recruiter says its mailbox has been jammed with CVs from outraged Deutsche staff who are not on what insiders call the “retention list.” Some of these come-and-get-me pleas are from people with at least ten years’ service, complaining that the bank has no regard for loyalty or performance. “It’s a dramatic decision Deutsche made,”…

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Trump Rally Makes Stock Options Great Again for Some CEOs

Alan Johnson, managing director of pay consulting firm Johnson Associates in New York, said the big gains for the leaders of American Express, Goldman Sachs and JPMorgan reflect how stock option compensation can magnify gains in a company’s share price. “When the stock goes up, with options, you get more leverage,” he said. Reuters /…

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Tillerson Pay Package Structured to Avoid Conflicts

“I wish more companies would adopt the way [Exxon] pay[s] their executives, where you don’t get it when you leave, you’ve got to earn it, [and] you get [it] delivered over time,” says Alan Johnson, president and founder of compensation consulting boutique Johnson Associates. Agendaweek.com / January 6, 2017

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Bankers, Your Bonus Is Likely to Be 10% Smaller Than It Was Last Year

“In 2017, banks will start to rebound – with some of the onerous regulations rolled back, maybe the banks will start to do better, which would be good for everybody,” he said. “A leading indicator of that is their stocks have done particularly well since the election, meaning the markets believe that this will be…

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Wall Street Bonuses to Decline

“If you listen to politicians, you’d think bankers are still making money like it’s 2007. They’re not,” said Alan Johnson, who runs the firm and helps banks design compensation programs. “You can make this kind of money working at PepsiCo, and life at PepsiCo is lot more pleasant.” The Wall Street Journal / November 6,…

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