Diversity at the Board Table and on Executive Teams Generates Financial Benefits
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Shared Commitment to the Company’s Success
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Your company may or may not be large enough to warrant requesting a say on pay from your shareholders. Even if you are not of the size and scale to participate, it is beneficial to understand the trends and the implications for all CEOs.
The Hay Group, now part of Korn Ferry, regularly provides market information on this topic. Boards are paying greater attention to CEO compensation with the advent of shareholder votes on CEO pay. A high percentage approval in one year does not guarantee a high approval rating in subsequent years. Most Fortune 500 companies have been receiving approval but there are some notable exceptions; shareholders are paying attention. This trend has resulted in more organizations increasing the proportion of compensation related to performance. Based on a Hay survey, performance-based share awards is the largest piece of long-term incentives; use of stock options and restricted shares is declining. http://fortune.com/2015/07/08/say-on-pay-ceos/
