Why CEOs and Senior Executives Are Often in the Dark About Pay

In the era of the CEO Pay Ratio, we believe employees should understand the rationale behind their pay. However, boards may not be considering this issue with the employees at the top: CEOs and other senior executives.

Providing extra attention to the pay conversation with senior leaders can lead to a better overall understanding of pay programs, clarity on how to meet the goals laid out through short- and long-term incentives, and deeper engagement that could cascade through the organization.

This article offers three easy steps boards can take to prepare for the discussion.