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Blair Jones and Roger Brossy Published in NACD Directorship Magazine

Blair Jones and Roger Brossy Published in NACD Directorship MagazineZoom inDownload PDF

Blair Jones’ and Roger Brossy’s article, “Too Much Short-Termism: Has Executive Pay Contributed to the Problem?” was published in the July/August 2016 issue of NACD Directorship magazine.

From the article:

If you take large-company executive pay packages at face value, they typically offer a strong incentive for superior, long-term performance. Incentive grants for the long term make up about 80 percent of CEO pay packages for the 250 largest companies in the S&P 500. That percentage dwarfs the 20 percent represented by salaries and annual bonuses. With so much long-term pay at stake, why do long-term institutional investors object that companies are too short-term–oriented? The Vanguard Group, BlackRock, and State Street, for example, have raised concerns over the lack of a long-term value creation mind-set. If we take a close look at executive pay practices, we can gain a greater understanding of the evolution of long-term incentives, how they might contribute to short-termism, and how they might better fuel long-term gains.

Read the rest of the article by downloading the PDF.