June 20, 2017
Incentives & Risks: Questions Directors Should Ask
– Liz Dunshee
Recent corporate scandals hammer home the importance of board oversight for pay-related risks. This NACD article covers this area – and suggests asking these 6 questions:
1. Do we have an appropriate balance of metrics?
2. Are we calibrating goals & upside opportunity appropriately?
3. Are we considering the quality of performance?
4. How robust are the controls on data that is used as inputs to the compensation plan?
5. How are our board’s committees collaborating on developing & monitoring incentive plans?
6. Are we actively exercising discretion?
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