PROXY SEASON 2014 – CAN YOUR BOARD SELL ITS EXEC PAY PLAN TO INVESTORS?
With U.S. proxy season 2014 on the way, corporate board compensation committees once again must sell shareholders on their plans for paying the CEO — and face investor wrath if they can’t make their case.
Yet despite ever-tougher “Say on Pay” voting standards, “too many companies and their boards do a poor job of telling their pay story,” notes Ralph Ward, publisher of the Boardroom INSIDER online monthly. In the March issue, BI offers a special section of articles on what board comp committees must do to pitch their “pay for performance” ideas to investors, the latest pay disclosure trends, and tough questions the board needs to ask on comp plans.
In “Six Ideas for Selling Your Plan to Investors,” Ward writes that SEC-mandated pay disclosures often “shed more shadows than light” on exec pay, and explores how leading edge companies are using “realized/realizable” pay measures for a more accurate picture. “The Top CD&A Trends” digs into how, after several years of mandatory board “Compensation Discussion and Analysis” disclosures, CD&As are evolving to fix their earlier shortfalls and better address investor demands. For “Pay Questions Your Board Must Ask NOW,” Ward rounds up the seven questions best-practice comp committees are asking on pay plans before they’re approved.
Also in the March Boardroom INSIDER:
Will Carl Icahn force boards to look into their own “hidden” conflicts?
Five fresh ideas for getting more out of your board.
How one CEO forces himself to “see through his board’s eyes.”
Q&A: What do you do when your board has gone “stale?”