Post Dodd–Frank Wall Street Reform and Consumer Protection Act there has been a pretty dramatic shift towards the center as it concerns the design of executive pay packages.
Companies are afraid to design any plans that don’t very closely align executive pay with TSR out of fear that they’ll fail their Say on Pay votes. The major proxy advisory firms (mainly ISS and Glass Lewis) have gotten very powerful post Dodd-Frank, and if executive pay packages aren’t highly aligned with TSR they often recommend shareholders vote against the awards.
I’ve written quite a few posts on executive compensation before if you’d like to 1. Here and here and here and here and here and here and here and here. learn more about the subject as a whole 1, but I’d like to close today by sharing a great video from World at Work featuring Andrew M. Goldstein, Certified Executive Compensation Professional (CECP) and Central Division Practice Leader at Towers Watson. He has some interesting insights on the subject, and I always like to share at least one video a week when possible so take a look.
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