Why Pay-Driven Performance Doesn’t Work

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Why Pay-Driven Performance Doesn’t Work

Does pay drive and motivate specific performance outcomes? Or is the goal to align payouts with results, ensuring that leaders are rewarded for performance outcomes?

July 8, 2024 NACD Online
Human Capital ManagementExecutive & Director Pay Design
Articles

How Should Compensation Committees View 2024 Say on Pay Results?

The most compelling trends of this proxy season emerge from a deeper analysis of companies that received less than 75% support in addition to those that failed. Insights from this group reveal where investors, proxy advisors, and other stakeholders may have heightened expectations in the future.

June 13, 2024
Shareholder Voting, SOP, and Proxy Results
Articles

Evaluating Executive Compensation in the Age of Activism

Boards must acknowledge exec comp's impacts and take steps to mitigate effects on the company.

May 31, 2024 Directors & Boards
Emerging Issues
Articles

Flipping the Script: When Compensation Leads, Not Follows, Strategy

In the first of this three-part series, we examine three case studies that show how executive compensation discussions catalyze value creation by highlighting misalignment or unsubstantiated assumptions.

May 30, 2024 Corporate Board Member
Executive & Director Pay Design
Articles

Executive Leadership Transitions: A Playbook for Directors

Leadership transitions have emerged as a focal point for boards contending with rising rates of executive turnover and external appointments to top leadership positions, a trend that is expected to continue throughout 2024.

April 30, 2024 NACD Online
Human Capital Management
Articles

Paths and Implications for Navigating CEO Transitions

Will outgoing CEOs stay as a mentor to the new CEO, transition to a board role or depart entirely? Regardless of the role, each path will affect the organization's stability and strategic direction.

April 25, 2024 Directors & Boards
Human Capital Management
Articles

Resilient Rewards

Pay for performance is a core principle governing compensation program design. However, excessive market volatility and unfavorable macroeconomic or business-specific conditions can result in investment constraints, lower revenue or profitability, and a depressed equity valuation.

March 19, 2024 NACD Directorship Magazine
Emerging Issues
Articles

2023 Say on Pay Reports

S&P 500 and Russell 3000 Failure Rate & Pay Vote Analysis

Say on Pay vote failure rate sits at lowest level since 2017.

January 19, 2024
Shareholder Voting, SOP, and Proxy Results
Reports

Revisiting ESG and DEI Incentives Amid Changing Times

Companies can assess their progress on a spectrum of metrics (including broader sustainability and human capital measures) and determine whether to adjust their incentive plans in response – and, if so, how.

December 28, 2023 Workspan
Human Capital Management
Articles

Newly Public Companies and Stock Ownership Guidelines

Market volatility and downward pressure on valuations will affect board-level discussions of executive stock ownership.

December 13, 2023 Directors & Boards
Executive & Director Pay Design
Articles

When Should Companies Consider an Adjustment to Executive Incentive Payouts?

Compensation committees must balance wanting to reward executives for adding value to ongoing operations despite external setbacks, with maintaining alignment to the shareholder experience and the integrity of the incentive program.

November 29, 2023 NACD Directorship Magazine
Executive & Director Pay Design
Articles

Enhancing Investor Confidence

We explore the IAC's recommendations, why they could be a big deal for investors, and questions boards can ask to prepare for these potential changes.

November 20, 2023
Human Capital Management
Articles

The State of ESG Goal-Setting

ESG metrics are increasingly prevalent in incentives, but disclosure has not kept pace. In recent years, the prevalence of ESG metrics in executive compensation design has expanded.

October 30, 2023
Human Capital Management
Articles

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