Published in financier Worldwide - june 2011

The Five Critical Compensation Committee Issues in 2011

By David Swinford

As Boards grapple in 2011 with continued regulatory and investor demands for improved governance and corporate performance, a few key issues have emerged as especially critical. In this chapter from the Global Reference Guide 2011: Governance & Executive Compensation, PM&P President and CEO David Swinford examines how Compensation Committees can most effectively deal with five key issues in 2011:

• Pay for Performance: Recognizing the limits of TSR
• Retention: Keeping top talent in a low-performing environment
• Controversial Pay: Why red flag practices usually aren't worth fighting for
• Communicating Complex Programs:  The challenges of sending a clear message about pay