Incentive pay is a significant piece of the executive compensation pie, and it’s often a trigger for poor say-on-pay support. From year to year, compensation committees may tweak their incentive pay structure; however, a full restructuring is often motivated by shareholder pressure or a major change in the company’s business model.
In this episode, Marc Ullman, a partner with Meridian Compensation Partners, joins host TK Kerstetter to discuss best practices for rethinking the incentive pay structure. With the goal of aligning pay and performance, Ullman outlines eight DOs and DON’Ts for today’s compensation committees.
DO involve all the right people: finance, HR, business unit leadership, corporate leadership, investor relations. The more perspectives, the better. Certainly, you want your business unit heads and corporate leaders involved because you need them to help roll this out down the road—and you need them to buy into the metrics and the targets that are ultimately going to be set.
In addition to his DOs and DON’Ts, Ullman shares his expectations for executive pay under the Trump Administration. How will regulation or repeals affect the compensation landscape for today’s boards and committees?