Board Advisory

By Jeff McCutcheon and Rich McGinley Given the rapid growth in share repurchase arrangements, we believe it is necessary for compensation committees to closely review the relationship between buybacks and incentives and carefully consider the role of unintended consequences within the executive performance management process.  In...

By Paul McConnell and Mark Gressle In supporting a company’s strategy, the board must adopt compensation programs that are aligned with the strategy and allow managers to participate meaningfully in the value they create for shareholders. Consequently, Boards and managers must explain to institutional investors and...

 By Jeff McCutcheon  While perfectly aligned with investors in the short term, “TSR programs may diminish accountability for strategy by rewarding for events unrelated to changes in long-term franchise value.” Paying for performance is assumed to be the objective of most pay plans. A quick read of a handful of proxy statements will likely find the phrase prominently used. The Dodd-Frank act...

By Jeff McCutcheon (and co-authored by Dave McDaniel, Board Advisory). “If you don’t know where you are going, you may wind up someplace else.” -Yogi Berra For executive compensation, achievement of corporate strategy is the destination; pay levels, pay programs, and metrics provide the route. As inevitably...