Resource Library Insights

In certain cases, many enduring principles of executive compensation should be applied to ESG metrics, including considering the alignment to company strategy and values and the incentive value that a broader view of performance can provide.

Private companies and private equity- or venture capital-backed pre-initial public offering (IPO) companies fall at one end of the governance and compensation spectrum.

What (if any) role should ESG play in their companies’ compensation plans, and if used, how should ESG-related incentives be structured?

Investor demands, societal pressures and competition for employees are pushing boards to be intentional about where and how they focus on human capital management (HCM). Leading companies view HCM as a value driver and strategic differentiator.

Going public means adding structure and formality to many areas of a company. Part of that structure includes forming a compensation committee with a clear charter, delineated responsibilities, and a calendar of actions.

Setting goals for incentive compensation has long been one of the compensation committee’s biggest responsibilities, made especially difficult by the Covid-19 pandemic.

From March 1, 2020 to February 13, 2021, 270 Russell 3000 companies announced structural changes to their in-flight and/ or go-forward incentive plans

Semler Brossy drives this important incentive pay conversation forward.

Many boards are expanding their succession management oversight to cover the next generation of talent.

When to play offense or defense in executive compensation design - comparing approaches and identifying circumstances where each approach can work best to help newly public companies.

Compensation Committees can start discussions about the principles to guide any adjustments, whether formulaic or discretionary.

When and how should directors adjust executive incentive payouts?

Covid-19 will create a separate set of issues, but the principles for dealing with sudden executive turnover are consistent.