August 16, 2013 Executive Compensation Executive & Director Pay Design Articles

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Executive & Director Pay Design

A Better Way to Align Pay, Performance

Published August 16, 2013
Published August 16, 2013

In recent years, a lot of discussion about aligning pay with performance for corporate executives has focused on the use of performance conditions for equity grants.

The idea is that by tying the vesting of equity to explicit performance goals, executives will be held more accountable for results in order to “earn” the major share of their compensation.

However, in today’s environment, proxy advisors and many shareholders are often more concerned with the reported accounting value for equity incentives at grant rather than how much is actually earned by executives for performance. As a result, while performance share plans clearly have a role to play in executive compensation design, they are far from a panacea to address the pressure to improve pay for performance alignment.

View the full article as it was originally published.

John Borneman

John Borneman

Managing Director

John has nearly 25 years of experience as an executive compensation advisor, with broad expertise in consulting to boards of directors and senior management on compensation and related governance issues. His clients range in size from Fortune 100 enterprises to small- and mid-sized companies. John is a thought leader in helping companies manage the pay-for-performance relationship and navigate emerging trends in environmental, social, and governance (ESG) issues related to executive pay. 

He has extensive experience working with companies in transition (e.g., M&A, IPO, spinoffs, turnarounds, leadership changes). John is a graduate of the University of Chicago’s Booth School of Business and the University of Michigan. He is a Certified Executive Compensation Professional (CECP). 

Of Interest

John is a lecturer for the WorldatWork Faculty, teaching Executive Compensation and Business Acumen for HR Professionals.

Industry Experience

  • A Range of Industries
  • Manufacturing/Industrials
  • Real Estate
  • Technology
  • Healthcare

Featured In

  • Equilar
  • Directors & Boards
  • Harvard Law School Forum on Corporate Governance
  • NACD/Directorship

Authored Insights

Dan Marcus

Dan Marcus

Senior Advisor

Dan Marcus has over twenty-five years of experience consulting to senior management and boards of directors on corporate governance issues, performance measurement, development and management compensation design. Prior to joining SBCG, Dan was a Worldwide Partner with Mercer Human Resource Consulting and served as Managing Partner of SCA Consulting.

Industry Experience

  • Retail
  • Chemicals
  • Consumer Products
  • Software and Services
  • Semiconductors
  • Diversified Industrials
  • Aerospace and Defense
  • Hospitality
  • Biotech
  • Fortune 100 Companies
  • Smaller Private Companies

Featured In

  • NACD/Directorship

Authored Insights

This article was originally published in NACD/Directorship.

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