July 11, 2016 Executive Compensation Executive & Director Pay Design Articles

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Executive & Director Pay Design

Too Much Short-Termism Has Executive Pay Contributed to the Problem?

Published July 11, 2016
Published July 11, 2016

Re-evaluating pay practices can help boards protect long-term company interests.

If you take large-company executive pay packages at face value, they typically offer a strong incentive for superior, long-term performance. Incentive grants for the long term make up about 80 percent of CEO pay packages for the 250 largest companies in the S&P 500. That percentage dwarfs the 20 percent represented by salaries and annual bonuses. With so much long-term pay at stake, why do long-term institutional investors object that companies are too short-term oriented?

The Vanguard Group, BlackRock, and State Street, for example, have raised concerns over the lack of a long-term value creation mind-set. If we take a close look at executive pay practices, we can gain a greater understanding of the evolution of long-term incentives, how they might contribute to short-termism, and how they might better fuel long-term gains.

View the full article as it was originally published.

Roger Brossy

Roger Brossy

Managing Director

Roger Brossy has been an executive compensation consultant since 1981. He was the President of Sibson & Company and served on its Board of Directors for many years before co-founding Semler Brossy Consulting Group.

Roger also served as Sibson’s Practice Director for Financial Services. Roger is a member of the Dean’s Council for the Gallatin College of New York University.

Of Interest

Member of the Dean's Council for the Gallatin College of New York University. Co-founder of the firm.

Industry Experience

  • A Range of Industries
  • Financial Services
  • Manufacturing/Industrials
  • Technology
  • Healthcare
  • Fortune 100 Companies

Featured In

  • NACD Directorship Magazine
  • Journal of Business Strategy
  • Management Review
  • Directors & Boards

Authored Insights

Blair Jones

Blair Jones

Managing Director

Blair Jones has 30 years of executive compensation consulting experience. She has worked extensively across industries and has deep expertise in advising boards on company transitions, significant investor concerns, and an expanding human capital management mandate. Before joining Semler Brossy, Blair was the practice leader in Leadership Performance and Rewards at Sibson and an Associate Consultant at Bain & Company.

Blair holds the designations of Certified Benefits Professional (CBP), Certified Compensation Professional (CCP), and Certified Executive Compensation Professional (CECP). Blair has been named to the D100, NACD Directorship Magazine’s annual list of the most influential people in the boardroom for 10 consecutive years (2013–2022). Blair serves on the Mohawk Valley Healthcare System’s foundation board and is the Women’s Giving Circle leader. She also serves on the advisory board for M3 Placement & Partnership.

Of Interest

Named to the D100, NACD Directorship Magazine’s annual list of the most influential people in the boardroom community, including directors, corporate governance experts, regulators, and advisors, for eight consecutive years (2013–2020).

Industry Experience

  • Retail
  • Fortune 100 Companies
  • Turnarounds
  • Consumer Products
  • Automotive
  • Companies Undergoing Transformation
  • Aerospace and Defense
  • Healthcare

Featured In

  • NACD Directorship Magazine
  • Equilar C-Suite
  • Corporate Board Member
  • Agenda
  • The Corporate Board
  • Harvard Business Review
  • Bloomberg
  • Directors & Boards
  • The Conference Board
  • NASPP
  • Workspan
  • Harvard Law School Forum on Corporate Governance

Authored Insights

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