The latest reporting, opinion and research on executive compensation. We don’t necessarily agree with it all, but we provide it here for consideration.
Week of August 11, 2014Week of
August 4, 2014
Pay can be an effective tool to encourage innovation, but companies should focus on more than outcome when determining rewards. Innovation-based pay plans that capture the whole innovative process help alleviate the fear-of-failure and risk aversion associated with outcome-based rewards. Besides using pay to encourage creativity, companies can focus on creating a culture that encourages employees to, at times, prioritize outside-the-box thinking. Companies that find innovation to be lacking should explore how innovation is measured and may consider gradually reshaping their culture and incentive plan to encourage better processes and outcomes. Read more
Companies are directly addressing shareholder concerns and enhancing the level of detail in the compensation discussion and analysis sections of their 2014 proxies. Companies are also paying more attention to presentation—reader-friendly charts and graphs are becoming popular tools for conveying company-wide annual highlights and NEOs’ realizable pay levels. Thorough disclosure practices will be essential as companies work to incorporate the upcoming Dodd-Frank regulations into their pay plans. Read more
Compensation Trends + Developments
Regulation, Legislation + Governance
From Critics + Commentators