This presentation was delivered at the 2018 Equilar Executive Compensation Summit by a panel including Yvonne Chen, managing director at Pearl Meyer; Bob McCormick, partner at CamberView; and Linda Mills, director and chair of the compensation committee at Navient Corporation.
The panel explored why check-the-box incentive plans have become all too common in an era of compliance-driven compensation design and they offered suggestions in four key areas, which are outlined in this presentation:
- How boards and management teams can drive competitive advantage by selecting performance metrics and setting goals that link with the value proposition for shareholders (growth stock, value stock, high yield);
- Ways to align incentives with each company’s unique business strategy, including dimensions of business success beyond financial metrics;
- Exploring connections between incentive design and culture, leadership development, diversity, and innovation; and
- How incentive design can be used to clarify the pay-for-performance message for investors, advisory firms, and participants.
