Dialogue

The latest reporting, opinion and research on executive compensation. We don’t necessarily agree with it all, but we provide it here for consideration.

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Week of
November 28, 2016

Quick Picks

Social Funds Tie Pay to Impact | The Wall Street Journal (subscription required) | December 5, 2016

Some investment funds that focus on socially responsible investments have begun tying their portfolio manager’s compensation to the impact that the investments have made. One fund has added sustainability ratings from Morningstar Inc. into their fund manager’s compensation mix. However, other funds worry that these social, environmental, and governance metrics are unreliable and may incentivize fund managers to “pursue doing good at the expense of doing well” in terms of a financial return. Read more

Is Your Firm Underperforming? Your CEO Might Be Golfing Too Much | Harvard Business Review (subscription required) | November 30, 2016

A recent study evaluates incentive compensation, firm performance, and evidence of CEOs “shirking” their duties in an attempt to examine the relationship between CEO leisure consumption and firm performance. The analysis claims to have identified a causal, negative relationship between CEO leisure consumption and changes in firm performance. The study also looked at CEO turnover to determine if boards are able to detect and remove shirking CEOs. Read more

Compensation Trends + Developments

Regulation, Legislation + Governance

From Critics + Commentators