Customizing Incentive Goals and Payouts to Specific Business Needs

Determining an effective executive pay strategy was a major challenge long before say-on-pay increased pressure on compensation committees to adopt “safe” practices. However, that shouldn't override the more need to tailor plan designs to the specific needs and strategies of the business.

This article discusses how boards can best measure and reward performance that specifically drives business plan achievement, as well as ensure that their plans' performance expectations and payouts are timed to their actual business cycles.