Executive compensation continues to be a focus for investors and boards. And some investors believe there needs to be a better alignment of compensation with individual and company performance. Compensation is addressed in several Dodd-Frank Act rules written by the SEC: say on pay, CEO pay ratio disclosure, pay for performance, and clawback policy disclosures.
Executive Compensation Series: Legal and regulatory requirements
To provide effective board oversight, compensation committees have to understand myriad standards and regulations. Here, we explain their duties and the rules that drive them.
PwC’s 2016 Annual Corporate Directors Survey
Shareholders continued to vote in favor of compensation plans during the 2016 proxy season, but the majority of directors don’t think the 2011 rule has ‘right-sized’ CEO compensation.
ProxyPulse: 2016 Proxy Season Review
Some public companies continue to fall short of important benchmarks for say-on-pay support. Approximately 11% of companies (262) did not surpass the 70% shareholder support threshold this season.
Study roundup on executive compensation
ISS says boards are getting better at aligning pay and performance. But studies from MSCI and Pay Governance have differing views as to whether performance-based pay programs are effective.