Our Insights

Board Oversight of Executive Pay: A Fresh Approach

Executive pay has long been in the spotlight for shareholders, boards, management teams, and commentators alike. More recently, the connection of executive pay outcomes with company performance has taken center stage. Read more

Planning Above and Beyond Pay Ratio Disclosure

The bedrock of executive compensation theory is shifting as proposed elements of the Dodd-Frank Wall Street Reform and Consumer Protection Act are completed. So too have the essential principles and philosophies that compensation committees have relied on—and those principles will be shaken further when the executive-pay-to-median-worker ratio must be reported in 2018. Read more

Notes From the Field: Risk May Not Be Inherent in Pay Designs

One would be hard-pressed not to be slack-jawed over the revelation of fraud at Volkswagen in late 2015. The audacious scale of the perpetration—11 million cars, over 8 years, in 36 countries—was hard to fathom. Bad acting on both this and a lesser scale drives observers of corporate governance to reflexively ask, “What’s going on at the top?” Read more

Share repurchases: What influence on exec comp?

Corporate America has increasingly relied on share repurchases to fuel earnings per share (EPS) growth in recent years. A study by Reuters found that nearly 60% of nonfinancial, publicly traded companies have bought back shares in the last five years, and share repurchases and dividends exceeded capital spending in 2014. Read more