Expert Perspective By Grahall’s OmniMedia Editorial Board
In her February 17, 2011 article in Forbes (Proxy Season Again? Creating a Compensation Discussion and Analysis That Really Speaks to Shareholders) Robin Ferracone asks: as you “…hunker down to write drafts of the Compensation Discussion & Analysis (CD&A), will it be business as usual… or will it be time to start over?”
Not only is it time to start over, but we may be in the verge of a paradigm shift where boards and their committees will begin to engage shareholder AND stakeholders in discussions with the purpose of explaining and defending executive compensation structures and results. As Grahall’s Garry Rogers writes in his in timely and important client advisory “Say On Pay Ushering In Paradigm Shift? What You Need To Know NOW” “…we may be heading for nothing less than a total transformation of the process by which executive compensation is both determined and implemented.”
With ISS (Institutional Shareholder Services) exercising even greater influence over proxy votes, companies that want to compete for and retain top management talent will have to be cognizant of her their programs will be perceived by this increasingly powerful organization.
To find out what you really need to know about how Say on Pay advisory votes may impact your company, and how Compensation Committees can work to balance risk and reward thereby creating appropriate compensation philosophies and programs that are both understood and accepted by shareholders read “Say On Pay Ushering In Paradigm Shift? What You Need To Know NOW”.