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 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...