Corporate Secretary and Foley hosted Executive Compensation Disclosure Including ‘Say on Pay’ as part of the Corporate Wavelength Web conference series. Hosted by experienced professionals, the series addresses the latest trends in corporate governance, risk management, and compliance.
The world’s economy changed dramatically in 2008 and has remained volatile in the opening months of 2009. Especially in light of the economic downturn and the new administration, executive compensation has become a hot button for investors. Companies, like never before, need to provide full and complete disclosure to explain and justify their executive compensation decisions. It is growing more likely that a “Say on Pay” requirement in some form will apply to many — if not most — companies. Such a requirement will make it vital to be able to persuade shareholders that a company’s executive compensation program is being administered responsibly. It is useful to learn how some companies are using creative and innovative approaches to explain compensation policies and decisions to help you improve the quality of disclosure.
- What are the trends?
- What are people saying?
- Incentive compensation — disclosure of performance metrics and target levels
- Competitive positioning — disclosure of peer groups and supporting information
- Potential impact of “Say on Pay”
Patrick Quick, Partner in Foley’s Transactional & Securities Practice, and Bryan Ortwein, Principal at Towers Perrin, discussed these and other issues relating to executive compensation disclosure.
