TITLE: Corporate Governance and Executive Compensation

CIS-NO: 2003-S361-1  
SOURCE: Committee on Finance. Senate  
DOC-TYPE: Hearing Retrieve the full text of testimony  
DOC-NO: S. Hrg. 107-739  
DATE: Apr. 18, 2002  
LENGTH: iv+204 p. il.  
CONG-SESS: 107-2  
ITEM-NO: 1038-A; 1038-B  
SUDOC: Y4.F49:S.HRG.107-739  
 
GPO-STOCK-NO: 552-070-29146-6.  
INCLUDED IN LEGISLATIVE HISTORY OF: P.L. 107-204

SUMMARY:
Hearing to examine issues related to corporate governance and executive compensation, including use of employee stock options by companies.
 
Also briefly considers S. 1940, to require companies to treat stock option compensation expenses on their tax returns in the same way that they are treated on their financial statements.
 
Supplementary material (p. 43-204) includes witnesses' written statements, a submitted statement, and correspondence.

CONTENT-NOTATION: Corporate governance and execs compensation issues

BILLS: 107 S. 1940

DESCRIPTORS:  
    CORPORATIONS; EXECUTIVES; WAGES AND SALARIES; SECURITIES; EMPLOYEE BENEFIT PLANS; INCOME TAXES

03-S361-1 TESTIMONY NO: 1     Apr. 18, 2002 p. 4-14, 149-177
 
WITNESSES (and witness notations):
   LEVIN, CARL (Sen, D-Mich)
   ENZI, MICHAEL B. (Sen, R-Wyo)
 
STATEMENTS AND DISCUSSION:
   Differing views on merits of legislation to require that stock options be treated as compensation by companies (related materials, p. 154, 157-177).
 
INSERTION:
   -- Levine, Linda (CRS), "Top Executive Pay: A Fact Sheet" Apr. 21, 2000 (p. 155-156).
 
CONTENT NOTATION:
   Corporate governance and execs compensation issues
 
TESTIMONY DESCRIPTORS:
   CONGRESSIONAL RESEARCH SERVICE
 
 
03-S361-1 TESTIMONY NO: 2     Apr. 18, 2002 p. 15-27, 59-74, 178-187
 
WITNESSES (and witness notations):
   BRANCATO, CAROLYN K. (Director, Global Corporate Governance Research Center, Conference Board)
   TESLIK, SARAH (Executive Director, Council of Institutional Investors)
   POZEN, ROBERT C. (Professor, Harvard University)
 
STATEMENTS AND DISCUSSION:
   Views on corporate governance best practices, including board processes to ensure effectiveness (related materials, p. 70-74); perspectives on and recommendations regarding various corporate governance issues, including shareholder approval of stock option plans.
 
CONTENT NOTATION:
   Corporate governance and execs compensation issues
 
TESTIMONY DESCRIPTORS:
   CONFERENCE BOARD; COUNCIL OF INSTITUTIONAL INVESTORS
 
 
03-S361-1 TESTIMONY NO: 3     Apr. 18, 2002 p. 27-58, 78-148
 
WITNESSES (and witness notations):
   KAY, IRA T. (Practice Director, Compensation Consulting, Watson Wyatt Worldwide)
   KENNEDY, KATHRYN J. (Assistant Professor, Law, John Marshall Law School)
   BIGGS, JOHN H. (Chairman, President, and CEO, TIAA-CREF)
   HEESEN, MARK G. (President, National Venture Capital Association)
 
STATEMENTS AND DISCUSSION:
   Findings of study examining corporate executive pay practices, citing benefits of stock options; refutation of claim that nonqualified deferred compensation plans provide major tax loophole for executives of privately-held corporations, with recommendations; review of problems regarding accounting requirements for stock options, with suggestions.
   Opposition to S. 1940, citing merits of stock options in attracting employees to venture capital companies (related materials, p. 94-105).
 
INSERTIONS:
   a. Watson Wyatt Worldwide, "Executive Pay in 2002: Compensation in Turbulent Times" with tables (p. 112-128).
   b. Watson Wyatt Worldwide, "Managing Stock Option Overhang in Today's Economy: The 2002 Study" with tables (p. 129-137).
 
CONTENT NOTATION:
   Corporate governance and execs compensation issues
 
TESTIMONY DESCRIPTORS:
   WATSON WYATT WORLDWIDE; TIAA-CREF; NATIONAL VENTURE CAPITAL ASSOCIATION; STATISTICAL DATA: LABOR AND EMPLOYMENT; STATISTICAL DATA: BANKING, FINANCE, AND INSURANCE; ACCOUNTING AND AUDITING; TAX INCENTIVES AND SHELTERS; EMPLOYMENT; CAPITAL FORMATION; DEFERRED COMPENSATION PLANS

LOAD-DATE: June 5, 2003