October 13, 2008
CII’s New Policies: Gross-Ups, Severance Pay and More
– Broc Romanek, CompensationStandards.com
During last week’s CII meeting, seven new corporate governance policies were adopted, including these two:
– Gross-ups: “Senior executives should not receive gross-ups beyond those provided to all the company’s employees.”
– Severance Pay: “Executives should not be entitled to severance payments in the event of termination for poor performance, resignation under pressure, or failure to renew an employment contract. Company payments awarded upon death or disability should be limited to compensation already earned or vested.”