Client Alert – CLAWBACK Update
Client Alert – An Update on Executive Compensation Clawbacks Back in October 2022, the SEC
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Zayla Partners recently conducted a market study on CEO executive compensation at public companies within the state of Louisiana. Utilizing data from proxy statements filed in 2022, Zayla noted various key findings on Louisiana’s top paid CEOs. As the 2023 proxy season continues and filings are made, we will continue to monitor new filings to provide updated observations and perspectives.
Compensation information for fiscal year 2021 from the companies listed below was gathered from SEC filings made available between January 1, 2022 – December 31, 2022. Analyzing summary compensation table values for 18 CEOs , Zayla noted companies reported an average total CEO pay of $3,285,000. Median total direct compensation for Louisiana CEOs was $1,915,000.
Louisiana public company CEOs received an average of their total compensation in base salary (573,000). Short and long-term incentives account for more than half of total pay – 55%. Growing concerns about the alignment of CEO pay with shareholder performance has been a key driver of the heavy emphasis on incentive pay as a part of total pay packages.
| Company | Name | Salary | Total Annual Incentive | Stock Awards | Option Awards | Chg Pension NQDC Excess Earnings | All Other | Total Compensation | Revenue (millions) | Industry |
|---|---|---|---|---|---|---|---|---|---|---|
| Entergy Corporation | Leo P. Denault | $1,289,538 | $2,457,000 | $7,383,591 | $1,602,462 | $4,178,300 | $134,853 | $17,045,744 | $11,743 | Utilities |
| Amedisys, Inc. | Paul B. Kusserow | $900,000 | $158,895 | $7,245,979 | $0 | $0 | $43,383 | $8,343,257 | $316 | Healthcare |
| Lamar Advertising Company | Sean E. Reilly | $700,000 | $800,000 | $4,035,240 | $0 | $0 | $399,518 | $5,934,758 | $1,791 | Real Estate |
| Pool Corporation | Peter D. Arvan | $525,000 | $2,100,000 | $2,889,832 | $0 | $0 | $60,552 | $5,575,384 | $5,296 | Consumer Discretionary |
| Lumen Technologies, Inc. | Kate Johnson | $184,840 | $1,329,129 | $3,013,700 | $0 | $0 | $254,461 | $4,778,130 | $19,687 | Communication Services |
| H&E Equipment Services, Inc. | Bradley W. Barber | $745,885 | $690,155 | $1,343,947 | $0 | $0 | $74,906 | $2,854,893 | $1,063 | Industrials |
| Origin Bancorp, Inc. | Drake Mills | $835,800 | $561,976 | $500,031 | $0 | $451,556 | $58,872 | $2,408,235 | $289 | Financials |
| Business First Bancshares, Inc. | David R. “Jude” Melville, III | $612,500 | $550,000 | $676,478 | $0 | $0 | $186,502 | $2,025,480 | $10 | Financials |
| AMERISAFE, Inc. | G. Janelle Frost | $681,000 | $194,085 | $1,029,041 | $0 | $0 | $23,715 | $1,927,841 | $182 | Financials |
| Viemed Healthcare, Inc. | Casey Hoyt | $470,000 | $449,750 | $138,822 | $819,729 | $0 | $23,512 | $1,901,813 | $117 | Health Care |
*Total Direct Compensation also includes Change in Pension Value, Nonqualified Deferred Compensation Earnings and All Other Compensation
Across the 18 company universe analyzed, Zayla noted the Financials Industry was most represented, with 8 public companies. Amongst those, the top 3 highest paid CEOs received an aggregate of $6.4MM in total compensation.
Among the 18 CEOs analyzed, Zayla notes that 16 were men and 2 were women.
Leo P. Denault is CEO of Entergy Corporation.
This was largely driven by the impact of retention incentives granted to the executive beginning in July 2021.
Salary: $1,289,538
Stock Awards: $7,383,591
Non-Equity Incentive Plan Compensation: $2,457,000
All Other: $134,900
TOTAL COMPENSATION: $17,045,744
*Based on 2021 findings
| Company | Name | Salary | Total Annual Incentive | Stock Awards | Option Awards | Chg Pension NQDC Excess Earnings | All Other | Total Compensation | Revenue (millions) | Industry |
|---|---|---|---|---|---|---|---|---|---|---|
| Entergy Corporation | Leo P. Denault | $1,289,538 | $2,457,000 | $7,383,591 | $1,602,462 | $4,178,300 | $134,853 | $17,045,744 | $11,743 | Utilities |
| Amedisys, Inc. | Paul B. Kusserow | $900,000 | $158,895 | $7,245,979 | $0 | $0 | $43,383 | $8,343,257 | $316 | Financials |
| Lamar Advertising Company | Sean E. Reilly | $700,000 | $800,000 | $4,035,240 | $0 | $0 | $399,518 | $5,934,758 | $1,791 | Real Estate |
| Pool Corporation | Peter D. Arvan | $525,000 | $2,100,000 | $2,889,832 | $0 | $0 | $60,552 | $5,575,384 | $5,296 | Consumer Discretionary |
| Lumen Technologies, Inc. | Kate Johnson | $184,840 | $1,329,129 | $3,013,700 | $0 | $0 | $254,461 | $4,778,130 | $19,687 | Communication Services |
| H&E Equipment Services, Inc. | Bradley W. Barber | $745,885 | $690,155 | $1,343,947 | $0 | $0 | $74,906 | $2,854,893 | $1,063 | Industrials |
| Origin Bancorp, Inc. | Drake Mills | $835,800 | $561,976 | $500,031 | $0 | $451,556 | $58,872 | $2,408,235 | $289 | Financials |
| Business First Bancshares, Inc. | David R. “Jude” Melville, III | $612,500 | $550,000 | $676,478 | $0 | $0 | $186,502 | $2,025,480 | $10 | Financials |
| AMERISAFE, Inc. | G. Janelle Frost | $681,000 | $194,085 | $1,029,041 | $0 | $0 | $23,715 | $1,927,841 | $182 | Financials |
| Viemed Healthcare, Inc. | Casey Hoyt | $470,000 | $449,750 | $138,822 | $819,729 | $0 | $23,512 | $1,901,813 | $117 | Health Care |
| Investar Holding Corporation | John J. D’Angelo | $538,451 | $277,549 | $224,998 | $149,994 | $0 | $41,165 | $1,232,157 | $73 | Financials |
| Crown Crafts, Inc. | E. Randall Chestnut | $465,728 | $417,150 | $0 | $0 | $0 | $75,396 | $958,724 | $79 | Consumer Discretionary |
| Globalstar, Inc. | David B. Kagan | $543,225 | $150,000 | $165,600 | $0 | $0 | $13,172 | $871,997 | $124 | Communication Services |
| Red River Bancshares, Inc. | R. Blake Chatelain | $452,100 | $335,057 | $37,928 | $0 | $0 | $27,176 | $852,261 | $94 | Financials |
| Home Bancorp, Inc. | John W. Bordelon | $408,904 | $225,000 | $73,540 | $14,321 | $0 | $113,620 | $835,385 | $125 | Financials |
| Home Federal Bancorp, Inc. of Louisiana | James R. Barlow | $291,325 | $167,327 | $0 | $0 | $0 | $119,335 | $577,987 | $21 | Financials |
| First Guaranty Bancshares, Inc. | Alton B. Lewis, Jr. | $396,250 | $133,902 | $0 | $0 | $0 | $21,089 | $551,249 | $98 | Financials |
| Catalyst Bancorp, Inc. | Joseph B. Zanco | $267,538 | $100,000 | $0 | $0 | $0 | $83,206 | $450,744 | $1 | Real Estate |
About Our Data
Compensation data was aggregated from proxy statements and annual reportsfiled during the period January 1, 2022 – December 31, 2022.
SOURCES
S&P Capital IQ
Securities & Exchange Commission (SEC) filings
Client Alert – An Update on Executive Compensation Clawbacks Back in October 2022, the SEC