The IPO Game When to Play Offense or Defense in Executive Compensation Design

A comprehensive, thought-provoking look at areas of the executive pay status quo to explore why they became industry standards, how you can determine if they’re right for your organization, and several alternative models that are emerging. 

Austin Vanbastelaer joins the show to unpack how to design executive incentives when there's no template to follow — mid-transformation, pre-revenue, or in the middle of a high-stakes transaction.

Three topics stood out in our most recent internal discussion: the broadening perspective on peer groups and talent markets, growing prevalence of targeted retention awards, and the current effect of AI on pay design and human capital economics. We continue exploring and welcome dialogue about these and other topics we're tracking.

The environment surrounding executive compensation is becoming harder to interpret. Regulations are evolving, shareholder expectations are diverging, economic signals are mixed, and the geopolitical landscape is volatile. 

The rapid growth in Artificial Intelligence (AI) capabilities has made attracting and retaining top AI talent one of the most vital ways for a company to gain a competitive advantage. However, investing in AI talent doesn’t come without challenges.

For organizations that have recently struggled to get the most out of contemporary PSU practices, shifting to a majority, or even 100% weighting, of long-vested RSUs may offer greater stability and certainty in volatile times.

Compensation elements have shifted to focus more on equity over the last ten years. Base salary and bonus compensation have become less prominent in pay design and have been replaced by more emphasis on long-term incentive (LTI) vehicles.

An in-depth look at the typical ranges seen in today’s director pay packages, actionable advice you can use to steer compensation discussions, and a series of deeper questions and considerations derived from Semler Brossy’s experience in similar negotiations.