Corporate and Financial Institution Compensation Fairness Act of 2009

The burden falls to the Compensation Committee of the Board

The proposed Corporate and Financial Institution Compensation Fairness Act of 2009 (the Act) will be in force for all public companies and is likely to set the tone for private company compensation practices. The Act requires a company to describe and defend four broad compensation-related areas:

1. Executive compensation should be tied to company performance.
2. Executive interests should be aligned with those of the company and its shareholders.
3. Executives should not be incentivized for unreasonable or imprudent risk-taking.
4. Executive compensation programs should be transparent, protect against bias and provide for enhanced accountability.

The Act would constitute the first broad-based federal legislation regulating executive and stock compensation, and the burden for ensuring compliance with the Act falls squarely on the Compensation Committee of the Board of Directors.

Syzygy Consulting Group, experts in executive compensation, is well positioned to advise and counsel Compensation Committee members on the broad requirements of the Act. More importantly, Syzygy is capable of developing and designing pay programs that address the major concerns of the Act, including:

• Performance-based pay that is truly aligned with short- and long-term shareholder objectives.
• Appropriate stock ownership guidelines, and vehicles (stock, options, etc.) to best align executive compensation with shareholder interests.
• Employment and severance agreements.
• Disclosure and governance.

Pillsbury Winthrop Shaw Pittman LLP, a world-wide law firm that Syzygy often partners with, has produced a White Paper which offers the most comprehensive look so far at the complex governance and compensation matters that Compensation Committees must begin to grapple with.

Syzygy invites you to read this compelling white paper. Click here to view the white paper.

Syzygy’s Compensation Committee Checklist is a valuable guide to ensure for regulatory compliance and best practices for compensating executives. Click here to receive your complimentary copy.

Founded in 1995, Syzygy’s principals have more than 50 years of collective experience and ask you to consider Syzygy when seeking truly independent executive compensation expertise. For example, Syzygy provides:

• Independent processes to objectively define the comparative human capital market and competition based upon factors reflective of the company’s growth and industry sector, which are also critical to the company*rsquo;s success and truly reflective of the company’s core labor market.
• Objective identification of appropriate vehicles for delivering compensation including cash, equity, benefits, perquisites, change of control benefits, employment contracts and other retention programs that are market-based, regulatory compliant and aligned to enhance both employee interests and shareholder value.
• Expert design of all cash and equity compensation programs including establishing executive performance measures, target incentive levels and other employment provisions.
• Specific research and objective recommendations on compensation for members of the Board of Directors customized to the unique role and background of each Board member.
• Guidance, communication and representation to Board members, shareholders, executive management, employees, auditors, regulators and the press as deemed appropriate to implement and explain Compensation Committee actions regarding all aspects of executive and director pay.