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 second meeting of this three-part series was held over a complimentary breakfast on November 15, 2018.
Session #2: Optimizing Incentive Design
Enhanced shareholder scrutiny, say on pay, and proxy advisor policies have led to converging incentive designs that may not best align with the company’s strategy, performance horizon, or talent requirements. Attendees discussed the following topics:
Are current "market standard" executive compensation programs overly short term in their orientation?
How can you push back on investor feedback you don’t agree with?
How does your committee balance consideration of shareholder and other stakeholder input with the specific circumstances of your company to create the right incentive structure for your management team?
Are there opportunities to step away from the pack to reflect your company’s unique culture, operating model, and talent needs?
How can you use data and analytics to understand and empower your committee to implement a unique incentive design?