Our Insights

Set Goals That Meet Stakeholder Expectations

In recent years, no subject in executive compensation has gotten greater focus than the shift toward formulaic, performance-based incentive plans. The advent of annual say on pay, coupled with the increasing attention of institutional investors and proxy advisers, has accelerated this trend and now made this practice the norm. The focus has thus changed to ensuring that the goals underlying such programs are sufficiently rigorous and robust. Read more

Preparing pay plans for what’s next

The oil environment over the past 18 months has raised a stiff challenge to energy-company compensation committees. In 2015, typical industry pay plans that were neatly crafted to reward executives for increased production and exploration paid off when executives delivered on their promises. But the payoff was often misaligned with share price performance, which fell dramatically across the industry. Read more

Planning Above and Beyond Pay Ratio Disclosure

The bedrock of executive compensation theory is shifting as proposed elements of the Dodd-Frank Wall Street Reform and Consumer Protection Act are completed. So too have the essential principles and philosophies that compensation committees have relied on—and those principles will be shaken further when the executive-pay-to-median-worker ratio must be reported in 2018. Read more