Back to News

Comp Talks: Risk Mitigation Devices – Stock Ownership Guidelines, Holding Periods and Clawback Policies

Pacific Time


View Presentation

Comp Talks is a monthly program designed to address hot topics in compensation for public companies. The goal of the Comp Talks series is to provide practical information to help you:

  • make compensation decisions that motivate your employees, consultants and directors to achieve your business goals,
  • confidently explain those decisions to employees, directors, stockholders and proxy advisory firms, and
  • administer your programs effectively.

Our programs, conducted by Cooley practitioners and industry experts, are designed to give you the information and tools you need to keep up with current compensation trends so you can balance the legal, tax and disclosure requirements and "best practices" with your practical business needs.

As many public companies approach a new fiscal year and begin to examine compensation philosophies, each compensation committee needs to be mindful about its annual risk assessment that considers whether compensation policies and practices are reasonably likely to have a material adverse effect on the company. This program will discuss strategies for approaching a risk assessment, including who to involve and what to look for to protect the company and satisfy fiduciary obligations to the shareholders. This program will also focus on three common risk mitigation policies: stock ownership guidelines, holding requirements and clawback policies.

Specific Topics Include

  • What does an effective and efficient compensation risk analysis look like?
  • What risk considerations should be included in each new compensation design?
  • What ownership guideline features are reasonable, and why?
  • What are stock holding requirements and how might they be better than ownership guidelines?
  • What should a clawback policy include, and what are the surrounding legal and accounting concerns?  

Daniel Laddin – Founding Partner, Compensation Advisory Partners

Thomas Welk – Partner, Cooley

Amy Wood – Partner, Cooley (moderator)

Register to access recorded webast

Upcoming Comp Talks Program

  • November 15, 2017 – ESPP design, administration, tips and traps

Related Contacts
Amy M. Wood Partner, San Diego
Related Practices & Industries

Compensation & Benefits