Compensation and governance experts Seamus O’Toole from Semler Brossy and Krystal Berrini from Camberview Partners met with NACD members who serve on compensation committees for an exclusive executive compensation peer-to-peer group series. The first meeting of this three-part series was held over a complimentary breakfast on September 10, 2018.
Session #1: Evolving Investor Landscape
The investor landscape has never been more difficult to navigate. In addition to traditional money managers, activist investors have become more prominent, and capital inflows into passive strategies have driven an uptick in the influence and importance of governance teams at large asset managers. These governance teams are facing growing external pressure from asset owners to focus on governance, diversity, pay, and sustainability. We will discuss how evolving shareholder perspectives and new disclosures, such as the CEO pay ratio and UK gender pay equity laws, may further shape board room discussion. Attendees discussed the following topics:
How are compensation committees responding to the calls from institutional investors to increase focus on sustained performance and social purpose? How does this impact shareholder engagement and how you interact with investors?
Is there a role for sustainability and other environmental, social and governance measures in compensation plans going forward?
What role should compensation committees play in responding to the increased external pressure on gender pay gaps and income inequality?
Was the CEO pay ratio a flash in the pan, or will investors, media, and special interest groups use the CEO pay ratio in the future?
How can your compensation committees evaluate compensation programs through the lens of an activist?