{"id":3371,"date":"2014-08-05T19:04:30","date_gmt":"2014-08-06T03:04:30","guid":{"rendered":"http:\/\/hodakvalue.com\/blog\/?p=3371"},"modified":"2014-08-05T19:37:56","modified_gmt":"2014-08-06T03:37:56","slug":"iss-vs-nucors-ghost","status":"publish","type":"post","link":"http:\/\/hodakvalue.com\/blog\/iss-vs-nucors-ghost\/","title":{"rendered":"ISS vs. Nucor’s Ghost"},"content":{"rendered":"

\"\"<\/p>\n

Just published in Directors & Boards<\/a>.\u00a0 The summary:<\/p>\n

Nucor’s classic incentive plan contained three elements:<\/p>\n

1)\u00a0 A fixed share of profit growth…<\/p>\n

2)\u00a0 …without limit<\/p>\n

3)\u00a0 Annual grant of standard stock options<\/p><\/blockquote>\n

The company was enormously successful because of this plan.\u00a0 It looks like everything that shareholders care about is imbedded in this plan.\u00a0 Empirical evidence strongly supports these plan elements as being good for shareholders.<\/p>\n

Yet none of them would pass muster with ISS today.<\/p>\n

So, if you’re a director of a public company, and you know what reason and evidence suggest, and you had a choice between adopting a Nucor-style plan or hewing to ISS’s standards, what would you do?<\/p>\n

Unfortunately, we know what they are doing, and that it is hurting<\/a> the value of public companies.<\/p>\n","protected":false},"excerpt":{"rendered":"

Just published in Directors & Boards.\u00a0 The summary: Nucor’s classic incentive plan contained three elements: 1)\u00a0 A fixed share of profit growth… 2)\u00a0 …without limit 3)\u00a0 Annual grant of standard stock options The company was enormously successful because of this plan.\u00a0 It looks like everything that shareholders care about is imbedded in this plan.\u00a0 Empirical […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,27],"tags":[],"class_list":["post-3371","post","type-post","status-publish","format-standard","hentry","category-executive-compensation","category-governance"],"_links":{"self":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts\/3371","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/comments?post=3371"}],"version-history":[{"count":3,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts\/3371\/revisions"}],"predecessor-version":[{"id":3374,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts\/3371\/revisions\/3374"}],"wp:attachment":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/media?parent=3371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/categories?post=3371"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/tags?post=3371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}