Our Insights

Don’t Take Favorable Votes at Face Value

Since the 2010 Dodd Frank Act gave shareholders of public companies the right to an advisory vote on executive compensation practices, we’ve been tracking the results through our say-on-pay database and reading between the lines. As companies begin to approach the 4th year on say-on-pay, it’s important they learn from the lessons of the past three seasons: Don’t be lulled into a false sense of security by the largely favorable votes. Read more

Aiming For Best-in-Class Decision Making

Best-in-class decision-making is what every compensation committee wants. How do committee members move themselves from feeling overwhelmed by the tactical to making the tactical seem routine? This article by Barry Sullivan explores specific processes compensation committees can utilize to foster best-in-class decision-making. Read more

Structure Pay Practices to Develop C-Suite Talent

To avoid sub-optimizing the performance of a talent-development system, boards need to assure the systems are built from the ground up with pay in mind. If compensation programs reward, motivate, and retain top performers as they move up, sideways, and take on special projects, the highest performing and the highest potential people will remain committed to the organization and become a competitive advantage. Read the full article, "Structure Pay Practices to Develop C-Suite Talent" written by Seymour Burchman and Blair Jones, in NACD Directorship. Read more

Using Pay to Change Culture

Members of the compensation committee play a key role in reinforcing corporate culture change through compensation program design and administration. Many companies, at critical junctures in their life cycles, must transform their cultures to regain or sustain success. A number of factors combine to define a company’s culture (see table), but across all factors, pay can be a key lever for sending signals about changes in priorities, influencing behavior, and driving transformation. Read more

Maximizing Your Comp Risk Assessment

Companies that have not completed a sufficiently well-rounded assessment may find themselves exposed if they disclose that their compensation programs do not incur undue risk and cannot back up that claim. Read the entire article written by Mark Emanuel and Blair Jones. Read more

Engaging Shareholders on Pay

Recent results on say-on-pay votes suggest that, at times when shareholders become unhappy with executive pay programs, boards are sometimes caught unaware. This lapse seems to happen for a couple of reasons: oftentimes board members don’t visit shareholders themselves to hear about pay concerns. Read more

Pay Practices For Developing C-Suite Talent

In the best-run companies, CEOs and directors take considerable care in developing high-potential leaders. The best-run companies also make sure that compensation decisions and other rewards support leadership development efforts. To avoid sub-optimizing the performance of a talent-development system, companies need to build their systems from the ground up with pay and other non-financial rewards in mind. Read the entire article (PDF) written by Seymour Burchman and Blair Jones. Read more