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Blair Jones featured in the Wall Street Journal, “CIT Pioneers Pay Link to ‘Tone At The Top’ for CEO”

Blair Jones was recently quoted in the Wall Street Journal’s article, “CIT Pioneers Pay Link to ‘Tone At The Top’ for CEO,” published July 26, 2o16.

From the article:

Blair Jones, managing director at executive compensation specialists Semler Brossy said that although tone at the top isn’t used as a measure of performance in an explicit way, it is on boards’ agenda when reviewing leadership skills.

“Whether you measure [maintaining tone at the top] explicitly or not, it is an important conversation for the board to have from a risk perspective,” she said.

Many provisions to ensure compensation programs are offering the right incentives to executives, such as maximum pay caps and clawbacks, have been adopted by companies in recent years, but looking at more qualitative elements in performance is a recent development.

“Companies are just beginning to realize they have to actually look at the ‘software’ as well, which would include things like tone at the top,” said Ms. Jones. For instance, in an environment where employees are trying to achieve goals at any cost, a compensation program with the wrong tone at the top could expose the company to some risk, she said.

Using tone at the top as a measure of performance may not become a trend, not least because using it as part of compensation isn’t the best way to develop an executive, said Ms. Jones.

“It will become a trend in risk assessment, but as a compensation measure it will be used more strategically by companies that are trying to convey a message of compliance at any given time,” said Ms. Jones. “It should part of the conversation, which may or not be explicitly a part of the compensation.”

Read the full article on the WSJ blog.