Managing in a Downturn: Advising You through the Public Scrutiny Associated with Executive Compensation

Your challenges

Public companies continue to face unprecedented scrutiny from their shareholders and key stakeholders about perceived high levels of executive compensation. If anything, the hailstorm of publicity around the handsome salaries paid out to CEOs and the absence of pay for performance has prompted regulatory and advisory groups to fine tune and elevate their standards for evaluating executive compensation practices.

It’s clear that shareholders want to be given some financial rope over the long term. Hence, in response to increased demands for corporate accountability, your company should complete an executive compensation roadmap that will help you to:

  • Strengthen the existing governance framework
  • Prepare for a new regulatory and disclosure framework
  • Attract and retain key board and executive members through the downturn
  • Increase ability to seek capital investment by demonstrating sound governance processes
  • Review relationships between pay and performance
  • Respond to regulators, the media and ultimately, to your shareholders and creditors

How PricewaterhouseCoopers can help

Whether you are a Canadian public company or one that is dual listed in Canada and the US, PwC can provide you with an objective, independent third-party review of your pay and performance linkages, as well as your decision making processes. We can also facilitate and develop a detailed set of guiding principles around the design, administration and governance of executive compensation.