Give Your Shareholders a Bonus: Leverage Pay Transparency to Build Confidence

Give Your Shareholders a Bonus: Leverage Pay Transparency to Build ConfidenceZoom inDownload PDF

With the constant clamor by shareholders for better governance, compensation committees have become ever more transparent about handling executive pay but there’s a missed opportunity.

The transparency can also give shareholders confidence in the overall governance of the company by the board.

Good pay program design and execution, simply put, is a surrogate for good governance. Give shareholders confidence in one, and they will have reason to believe they should have confidence in the rest.

Why give them any doubt that directors are keeping on top of the governance game?

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