All directors are keenly aware of their responsibility in setting executive and CEO compensation. Increased external pressure on — and opinions about — CEO pay and more crowded meeting agendas limit the available time for meaningful discussion and make this role more challenging than ever. The stakes in getting executive compensation right are high, with real opportunities to engage leadership and drive business results, but also with real risks of poor outcomes.
One side argues that compensation programs should line up with peers, trends and investor policies and guidelines to motivate executives and gain say-on-pay approvals. Another side argues that uniquely differentiated programs tied to the business are the only best practice to consider.
Drawing on their experience in executive pay and related governance, the panelists will discuss what’s happening today and on the horizon in executive pay, just in time before compensation committees begin their work for next year’s executive pay programs.
For my write-up of the event held by the Silicon Valley Directors Exchange and the Rock Center for Corporate Governance at Stanford Law, see Heads Or Tails? The Art And Science Of Executive Compensation.