Global 500 CEOs and Board of Directors Corporate Governance by GBAC CEO Yusuf Azizullah

Exec Compensation Rules Changed -Biden Tax Reforms

March 14, 2021 Yusuf Azizullah
Global 500 CEOs and Board of Directors Corporate Governance by GBAC CEO Yusuf Azizullah
Exec Compensation Rules Changed -Biden Tax Reforms
Show Notes Transcript

Executive Compensation Proxy Rules have been Changed by President. Biden's Tax Reforms and S&P Global Ratings,  ESG Top 5 Trends 2021

ESG Courses at http://boardroomeducation.com

Chairman of the Board and CEOs need to be aware that under the new Tax law that was just signed this week by President Biden, Executive Compensation has been completely changed for future Proxies and going forward. What do i mean Covered Employees individuals making more than a Million US Dollars and 2017 in the Presiden Trump (Top 5) individuals were the CEO the CFO and the Top five Executives and we reported on them and that was an exemption the IRS allowed but with the new Tax law, we have to not only consider individuals that were on that specific year, once you made the list for the company (you were on it) part of the list but now Jan 1st, 2027 Public companies will be required to (Report) and keep two lists, one for these five individuals and then the next five so basically about 10 people and in a given year, each year this may go up and down, however, it would go? If somebody's making more this year. Let's say this year the company needs to report that in their proxies and so forth why is this important how does this relate to ESG Sustainability in a year of COVID19 crisis in a year where the Public eyes are so much on Health, (safety) and Social Governance of Employees over all (CEO vs laid-off workers) Compensation for the top executives more visibility it puts a little more focus (Main stream) on it. Blackrock one of the largest Asset Managers has put and has been voting on proxies on (Executive) Compensation. So how does this (lime-light) relate to your boardroom, these are some of the challenges take a look at my blog in detail, i'll explain and I'm happy here to help you more but I wanted to pass this quickly thanks. I also wanted to talk about the S&P Global event, they had this week, great seminar ESG the new differentiator as you can see on the screen The big five topics for 2021 the managing director Michael Ferguson Senior Director, Sustainable Finance at S&P Global and Bruno Bastit (Director) S&P Global Ratings, they talked about what are some of the major key trends in 2021 and of course persistent pandemic and standards for ESG Reporting and with the compensation that we were talking about a minute ago here they emphasized that ESG (Qualified) Directors are going to be a major need for Board of Directors with ESG qualifications and the big trend with compensation is they're looking at it is of course, the rise in social and sustainability issuance diversification on the board level and these metrics with the compensation are adding the visibility that you really don't want on your company, you want them to be in positive manner reporting to you, they talked about the transition to financing Net Zero (Sustainability) commitments and a lot of companies are committing to it 2050 so keep you posted and keep that in mind and there's more to come