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.
Boards, shareholders, and executive pay
Increasingly, boards are reaching out to shareholders about executive compensation. In the first edition of our new Executive Compensation Series co-authored with Cleary Gottlieb, we explore why shareholder engagement is important, and how boards can do it best.
PwC’s 2015 Annual Corporate Directors Survey
The majority of directors have become comfortable with direct investor communications around corporate governance issues like executive compensation and board composition.
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.