The Advisors' Blog

– Liz Dunshee

Lazard recently hosted a director forum – which also featured SEC Commissioner Rob Jackson and representatives from Whitegate Partners, Wellington and CalSTRS – to discuss the complex pressures that boards are facing right now. According to this blog, here’s what the speakers had to say about executive pay:

Executive compensation has the potential to further escalate as a “lightning rod” issue for shareholders

– Shareholders expect directors to devise a tailored compensation program that clearly incentivizes the achievement of well-defined strategic priorities

– Investors view a board’s decisions about executive compensation as a window into directors’ thinking on important issues of strategy, culture, succession planning and talent retention

– As the complexity of compensation programs and disclosure has increased, shareholders have become more prone to opposing say-on-pay, particularly when the absolute quantum of compensation appears excessive

– The historical practice of deferring to outside compensation consultants may cease to pass muster as an appropriate way to design a compensation program

One Week Away: You can still register for our popular conferences – “Proxy Disclosure Conference” & “16th Annual Executive Compensation Conference” – to be held next Monday & Tuesday, September 16-17th, in New Orleans and via Live Nationwide Video Webcast. Here are the agendas – nearly 20 panels over two days. Register now to get practical advice on how to establish & disclose executive pay in a way that protects your board.