October 22, 2020 Executive Compensation Executive & Director Pay Design Articles

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Executive & Director Pay Design

Where Values Meet Value Creation Where Values Meet Value Creation

In an evolving governance environment, expressions of strong corporate character — exemplary corporate governance, responsible stewardship of the environment and positive contributions to society — are no longer nice-to-haves. They are increasingly becoming explicit expectations.

For compensation committees, this means finding ways to translate character concerns into practical and effective elements of their pay programs. It’s not a straightforward task. Character is often intangible, which naturally leads to holistic assessments. Holistic considerations are common when assessing performance and pay for mid-level managers, but current thinking for senior executives heavily favors objective, transparent goals. Subjectivity is frowned upon. So how do you measure executive performance against something that can seem almost impossible to quantify?

View the full article as it was originally published.

Stephen Charlebois

Phillip Pennell

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