April 21, 2017 Executive Compensation Executive & Director Pay Design Articles

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Executive & Director Pay Design

What if Equity Markets Stop Making Sense for Pay?

The U.S. equity markets may become in the short-term, a poor marker for long-term value creation. What does that mean for equity-based pay? This is a multi-faceted topic, and at its heart a matter of managing change.

Macro forces

Uncertainty is a hot topic. It feels more scary and volatile today, but that’s partially because we know how it worked out before. Whatever change occurs may br ing about a period of major upheaval as responses adapt accordingly. “Normalization” of monetary policy will also roil the waters, with an unforeseen impact on economic activity and growth.

The global and U.S. economies are likely to experience some dislocation, but are also likely to continue to function. The ability to adapt and innovate will create winners and losers in a landscape that may be markedly different. An old colleague of mine used to say, “Don’t bet on the end of the world. It’s only going to happen once.”

View the full article as it was originally published.

Todd Sirras

This article was originally published in Directors & Boards.

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