With increasing complexity in all aspects of corporate governance, particularly compensation, we anticipate executive pay practices and the role of the compensation committee will face increasing pressure in 2016.
This annual look ahead for boards offers clear and actionable guidance for setting priorities on the compensation committee’s calendar.
1. Put TSR in its proper context.
2. Link compensation to leadership strategy.
3. Use equity to combat short-termism.
4. Model new disclosure requirements now.
5. Think about director compensation like an activist.