Compensation Insights BLOG

By Bertha Masuda and Susan Schroeder One of the most important compensation-related activities a company will undertake is creating effective communication plans that explain incentive pay structures. Especially important is helping executives – those most vital to the ongoing success of the company – understand their...

 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 Bonnie Schindler Private, for-profit companies in the United States rely heavily on cash incentives to motivate and retain executives and employees, according to the recently released 2013 Vivient Consulting and WorldatWork “Incentive Pay Practices Survey: Privately Held Companies”survey of private-company incentive-compensation plans. This survey was conducted...

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...

By Dave Ryan Aligning Pay and Performance: The Compensation Committee’s Ongoing and Essential Role The strategic needs of any company are many and complex. These needs include developing leaders, balancing performance and retention needs, and creating and maintaining a performance culture. Board compensation committees play an essential role...