Resource Library Executive & Director Pay Design

Shareholder value is no longer everything. The 2019 Business Roundtable redefined the prevailing view of the modern corporation: companies must also deliver value to employees, customers, communities, and society.

Read our research and insights of all aspects of executive and director compensation design including, annual and long-term incentive design, goal-setting and performance measure selection, pay-for-performance alignment, and compensation in special situations like executive transitions, IPOs, and turnarounds.

Executive & Director Pay Design Reports

2021 Equity Grant Practices at IPO

Addressing Equity Grant-related Issues

We analyzed 431 companies with an initial public offering (IPO) in calendar-year 2021 (excluding SPAC mergers). Here are our findings.

September 27, 2022

CEO & Executive Compensation Practices

In the Russell 3000 and S&P 500: 2021 Edition

The study offers total compensation figures as well as details on base salaries and incentive-related elements of a typical compensation package.

September 29, 2021

Director Compensation Practices

in the Russell 3000 and S&P 500 - 2021 Edition

Corporate boards of directors face a more acute set of challenges in setting their compensation than they have in recent years. Until recently, a primary focus was the risk of shareholder litigation challenging allegedly excessive director compensation. That concern has receded as many companies have taken steps to mitigate the risk of lawsuits.

June 17, 2021 The Conference Board

Executive & Director Pay Design Articles

Attracting Tech Talent to Non-Tech Companies

5 Ideas for Boards & Management

Non-tech companies often need help when hiring and keeping tech-savvy talent. Semler Brossy’s leadership group recently discussed what strategies non-tech companies could use to build their tech organization.

May 11, 2023 QuickTakes

ESG & Human Capital ManagementExecutive & Director Pay Design

Setting Up Compensation Plans When the Stock Price Is Depressed

Many companies are facing significant challenges developing and implementing compensation programs for 2023 owing to market volatility and continued macroeconomic uncertainty. Retaining your best talent may require adjusting for market volatility.

February 10, 2023 Directors & Boards

ResilienceExecutive & Director Pay Design

Articles

2023 Fiscal Year Incentive Design Approaches for Retailers

Economic headwinds and volatile markets have significantly affected fiscal year 2022 (FY22) incentive plan outcomes in the retail sector. This uncertainty has led retailers to evaluate both minor adjustments to and wholesale redesigns of FY23 incentive plans.

February 2, 2023 WorldAtWork

Executive & Director Pay DesignResilience

Articles

Private-to-Public Companies, Their Governance Models, and Influence on Pay

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.

December 5, 2022 NACD/Directorship

ESG & Human Capital ManagementExecutive & Director Pay Design

Articles

FAQs on the SEC’s Pay vs. Performance Disclosure Rule

We answered several common questions that have arisen as companies prepare for the Pay vs. Performance Disclosure (PvP) requirements.

November 23, 2022

Executive & Director Pay Design

Articles

2022 Insights and Priorities for 2023: Six Key Topics for Compensation Committees

As companies finish the 2022 compensation season and prepare for 2023, we highlight top-of-mind topics for compensation committee members, questions to ask, and related resources.

November 4, 2022 QuickTakes

ResilienceESG & Human Capital ManagementExecutive & Director Pay Design

Adjusting Equity Grant Practices to Respond to Stock Price Volatility

We have observed several different approaches to manage "burn rates" and preserve share authorizations.

November 4, 2022 QuickTakes

ResilienceExecutive & Director Pay Design

SEC Adopts Compensation Recovery Listing Standards and Disclosure Rules

Here's a quick summary of some highlights of the rule, focusing on changes from the proposed rule.

October 26, 2022 QuickTakes

Executive & Director Pay Design

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Executive & Director Pay Design Bookmarks

CEO pay at large-cap companies grows 3.1 percent despite turbulent year

The SEC has moved the approval date for the updated NYSE and Nasdaq listing standards for clawback provisions to June 11th, giving companies until near August 10th (depending on actual approval date) to become compliant.

IR Magazine

Industry Leads the Way as Top Peer Group Criterion

Industry is the most used peer group selection criteria (88.2%) of a sample of the largest 500 companies by revenue that have filed proxies in 2023.

Equilar

Executive Long-Term Incentive Plans – March 2023

Relative TSR prevalence in CEO long-term incentives increased 21.5% from 2018 to 69.5% total in 2022 among the top 500 U.S.-based companies by reported revenue and remains the most prevalent metric seen in CEO long-term incentives.

Equilar

When CEOs Take A Pay Cut, What Difference Does It Make?

Large CEO pay cuts can decrease turnover and improve financial performance, as profitability has been found to increase from -8% to 10% in the three years following a large cut.

Forbes

Shearman & Sterling Releases 20th Annual Corporate Governance & Executive Compensation Survey

Shearman & Sterling’s 20th Annual Corporate Governance & Executive Compensation Survey covers topics ranging from ESG disclosure and board characteristics to IPO governance practices and equity plan provisions.

Shearman & Sterling

What CEOs Really Get Paid under Long-term Incentive Plans

Examining actual payouts of CEO performance grants can help investors understand how company performance outcomes compare to internal expectations and determine whether such payouts align with external expectations.

University of Connecticut School of Business

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