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Compensation Philosophy & Programs

Browse the latest articles on pay philosophy, including articles on pay prominance, strategic valuation of pay, talent retention methods, framing the compensation discussion and analysis (CD&A) portion of the proxy statement, and non-direct compensation matters such as SERPs and employee benefits.

Staying Ahead of Pay Practices

Public conversations about executive compensation tend to be spurred by the media and other entities that don’t have direct involvement in the creation and implementation of payment programs. The National Association of Corporate Directors’ (NACD) annual Leading Minds of Compensation event sought to hand directors the reins to guide and shape a smart dialogue on sensitive compensation questions. The Grand Hyatt Hotel in New York City was the setting on March 3 for a slate of experts to speak to and answer questions about the latest compensation trends. Read more

How to Set Threshold and Maximum Payouts That Are Tailor-Made For Your Company

Compensation committees sometimes feel challenged by the task of setting targets for annual goals. Not only do they have to address the upside potential and downside risk in the company’s business plan, but also other factors that include external headwinds and tailwinds associated with macroeconomic factors, competitive opportunities and threats, technological disruptions, and regulatory changes. That said, the task of setting annual targets can become quite complex. Read more

Leading Minds of Compensation 2015 Panel Discussion

Earlier this month, Semler Brossy's Barry Sullivan, managing director, was a featured speaker at the NACD Leading Minds of Compensation summit, held on March 3, 2015. NACD's Leading Minds of Compensation program is a forum for engaged compensation committee chairs, members, and directors gather to exchange insights with the nation's top thought leaders.The panel was moderated by Christopher Y. Clark, Publisher of NACD's Directorship Magazine and featured Dayna Harris of Farient Advisors, Janice L. Koors of Pearl Meyer & Partners, Steven Hall of Steven Hall & Partners, Jeff Joyce of Pay Governance LLC, Rose Marie Orens of Compensation Advisory Partners, and Barry Sullivan of Semler Brossy. Read more

5 Principles for Successful Executive Pay Benchmarking

Commentators on executive pay have for years pointed to factors that drive up compensation levels. Some of these factors, such as paying more to take account of unprecedented challenges and global competition, raise no eyebrows. But others, namely peculiarities in the compensation system unrelated to the functioning of executives, come in for fair criticism. Read more

Ask the Experts: What Will be a Hot Topic in Corporate Governance in 2015?

Now is the time for Boards to take a fresh look at their goal setting approach. At the time this was written, the SEC had not provided final rules on the CEO Pay Ratio or clawback requirements. While these topics will be hot in 2015 if final rules are provided, I view goal setting as potentially a more complicated and pressing issue for many Boards. Read more

Panel Discussion: Driving the Right Performance and Long-Term Incentives

Blair Jones moderated a panel at the Sept 11-12, 2014, Compensation Committee Boot Camp, jointly hosted by NYSE Governance Services, Corporate Board Member and Equilar. The panel answered questions such as how boards ensure performance measures and how to align goals with long-term incentive pay design. This panel also evaluated the right mix of vehicles and metrics that will drive multi-year corporate performance objectives. Read more

Five Questions Comp Committees Should Ask About Perks

Executive perquisites are one of the most overlooked aspects of the executive employment package during compensation committee meetings, and for good reason, executive compensation consultants contend. Except for outsize perks such as corporate aircraft use, perquisites are typically one of the smallest components of executive pay and thus attract less attention than other elements, such as long-term incentive plans and deferred compensation. Read more

Fostering and Rewarding Bright Ideas

It’s rare these days to scan a business journal or newspaper without reading mention of innovation as a, if not the, key success factor for businesses today. Innovation is so top-of-mind for today’s business leaders that it ranks as one of the top five CEO challenges in 2014 — along with human capital, customer relationships, operational excellence, and corporate brand and reputation — according to “The Conference Board CEO Challenge 2014: People and Performance.” Read the entire article by Barry Sullivan and Rosemary Newman (PDF) as it appeared in the August 2014 issue of Workspan. Read more