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Annual Reports For U.S. Listed Companies Over Essay

Annual Reports for U.S. Listed Companies Over the last several years, the way U.S. listed companies disclose financial information about executive / director benefits has changed dramatically. This is because of various scandals: surrounding executive compensation, benefits and stock options. Where, numerous abuses have caused regulators and investors to scrutinize different compensation packages. This has lead to a shift in the way companies will disclose information pertaining to salaries, bonuses and other forms of compensation. To fully understand what is taking place requires examining two publically traded companies and examining their executive / director compensation policies. This will be accomplished by looking at the 2009 annual reports / proxy statements for Nike and Cisco Systems. Once this takes place, it will provide the greatest insights as to how executive and director compensation packages are evolving.

Nike

To account for various forms of executive and director compensation, Nike will disclose this information in the 2009 Proxy Statement. Inside the report, it contains a number of different elements that are outlining financial related compensation to include: grants-based physical awards, outstanding equity awards, options that were exercised, equity compensation plans, non-qualified compensation plans and potential payments upon termination. These different areas are important, because they provide shareholders with a total view of the overall levels of compensation and how they are changing. A good...

In this part of the report, it lists the total amount of restricted and accelerated stock options that were awarded to executives (as this would come in at $11.8 million). This is important, because it shows how the company is disclosing numerous details on how they are compensating executives and directors. The different sections inside the report are highlighting, how Nike wants to be as transparent as possible. This is accomplished by providing investors / regulators with the total compensation packages and then detailing how they have changed over the last year. When you put these different elements together, it is a sign that the company was influenced by the various executive compensation scandals surrounding other industries. This would have an impact on Nike, by changing the way that they are reporting various forms of executive and director compensation. ("2009 Proxy Statement," 2009)
Cisco Systems

In the 2009 Annual Report, Cisco Systems is disclosing their executive / director compensation by subdividing into two categories these include: share-based compensation and share-based compensation related to acquisitions / investments. These would account for the total amount of compensation the company would pay to employees, as this would increase from: $1.1 billion in 2008 to $1.2 billion in 2009. At which point, the company disclosed a number of different details about their compensation plan to include: fair…

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Bibliography

2009 Proxy Statement. (2009). Nike. Retrieved from: https://materials.proxyvote.com/Approved/654106/20090724/NPS_44241/HTML2/nike-proxy2009_0037.htm

Cisco Systems 2009 Annual Report. (2010). Cisco Systems. Retrieved from: http://www.cisco.com/assets/cdc_content_elements/docs/annualreports/media/2009-ar.pdf
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