Farient Newsletter-1

How Companies Cope with a Changing Investor Ecosystem

Dear Friend,

Robin_Full_WhiteBG-966489-editedThe rise of index investing, where passive investors are now active owners, has been a game changer across global markets. Investors are making more demands from their portfolio companies and looking carefully at the long-term sustainability of their investments.

This month’s Comp & Gov Spotlight focuses on the 2019 Farient/Global Governance and Executive Compensation Group (GECN Group) Global Trends in Corporate Governance report, which highlights how investors and stakeholders are challenging corporations to look beyond shareholder value and “do the right thing.” The report also recommends concrete actions boards and managers can take to improve engagement with investors in this evolving ecosystem.

We invite you to anticipate investor concerns and prepare your board by reviewing our 2019 research and related stories below.


Robin Ferracone

Hot Off The Press From Farient


Seven Lessons From Engaged Investors

Corporate boards and executives need to focus on the issues that are most critical to shareholders, with climate change, human capital management and executive compensation topping the list as the most critical. This research explores what investors expect from their portfolio companies– and what corporates can do to improve investor engagement on key issues.


WeWork Employee Options Underwater as Ex-CEO Reaps

As criticism mounts over SoftBank’s $1.7 billion payout to WeWork founder Adam Neumann, it’s important to understand why buyouts of startup firms often include such payments out of a need to encourage founders to agree to let go, as I explain in this Wall Street Journal article.

Comp & Gov Analysis 


Reinventing Compensation in Transformative Times 

Though remaining static is not an option amid increased investor pressure, boards must know both when – and how – to change their compensation strategies to avoid unnecessary disruption. In this article, I delve into the proper characteristics of “Transformation Pay Plans” to better inform boards on strategies for continuous but consistent change.


Why CEOs Are Paid So Much? 

Why is executive compensation so high? As I say in this CNN Business article, much of the reason has to do with what other companies are paying their own chief executives. To stay ahead of competitors, boards need to make compensation competitive. But this sometimes creates conflict with shareholders.

Upcoming Events


Webinar: Why Compesation Alignment Still Matters in Governance 

Please join Farient Partner Marc Hodak, and Eileen Cohen, Senior Counselor Abernathy and McGregor, for a lively discussion on a more holistic way to look at, and communicate, the long term – in pay plans that reward sustainable practices, in disclosures that address what investors want to hear about, and in engagement with investors that reinforces that they are being heard, and that their interests and those of their other stakeholders are being addressed.


Ascend Pinnacle Roundtable

Farient CEO Robin Ferracone will be joining Stephen L. Brown, Senior Advisor with KPMG’s Board Leadership Center, on November 14 at 5:30 pm PST in Los Angeles, CA. They will be discussing the most critical issues currently being faced by compensation committees.

2019-10-29 12_29_33-Know What Your Investors Are Thinking — Carolinas — NACD

NACD Carolinas - Know What Your Investors Are Thinking

Join Farient Partner Marc Hodak at NACD Carolinas’ chapter program, Know What Your Investors Are Thinking on November 20 at 5:30 pm EST in Charlotte. This panel will explore investors’ top priorities for 2019 and beyond with a special focus on investor engagement.

Meet Robin Ferracone

Robin is our Founder and Chief Executive Officer. She is the author of the book entitled, “Fair Pay Fair Play: Aligning Executive Performance and Pay” and is a frequent presenter for well-known organizations including Council of Institutional Investors, Society for Corporate Secretaries and Governance Professionals, the National Association of Corporate Directors (NACD), and The Conference Board, among others. Robin has written extensively on the topics of performance management, incentive plan design, goal setting, and corporate governance. She has been quoted by several business and industry publications including, The New York Times, The Wall Street Journal, and The Washington Post. Learn more about Robin.

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Farient Advisors LLC is an independent executive compensation, performance, and corporate governance consultancy. Farient provides a comprehensive array of services to boards of directors and management including: compensation program design, goal setting and performance measurement, pay and performance alignment, board of directors compensation, and shareholder communication among others. Farient has offices in Los Angeles and New York and covers clients in more than 30 countries through our partnership in the Global Governance Executive Compensation Group (GECN).

New York: 55 E. 59th Street Suite 12B New York NY 

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