Published in Texas CEO Magazine - May 2010

Executive Compensation in the Limelight This Year

By Edgar H. McGaughey III

Recent initiatives to change the regulation, tax treatment and disclosure of executive compensation remain in many respects works in progress. Their final shape, and the emergence of best practices, will depend on more detailed regulatory guidance, the economic and political outlook, and the extent to which shareholders will embrace new opportunities to more directly influence corporate decision-making.

This article looks at 10 of the most pressing executive compensation issues in the current environment as CEOs and Boards face new governance challenges and changing investor expectations, including:

• Say on Pay
• Risk assessment
• Underwater options
• Managing career compensation
• Selecting performance measures and goals