Our Insights

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

A Cautionary Tale for New Compensation Committee Members

New directors bring fresh perspectives that contribute to a healthy discussion of all aspects of a business, including compensation, and often challenge the status quo (a notion which can be both good and bad). However, where compensation is concerned, directors would be well advised to look before they leap. This article provides a cautionary tale for companies with well-intentioned directors who may not appreciate that the changes they desire may be more suited to cultures they had known in the past. Read more

Adjusting Comp Goals “After the Fact”

Goal setting for executive incentive plans is generally a difficult proposition. In many situations, it would be desirable to have the flexibility to adjust plan targets automatically on an “after-the-fact” basis if the actual operating environment deviated significantly from the company’s original budgeting and planning assumptions. This article lays out an approach for automatically adjusting plan targets in a prescribed manner and illustrates the approach with a case study based on one of our clients. Read more