The Changing Landscape of Executive and Board compensation: Women Corporate Directors Dinner Meeting

• Pay for performance relationships are weak, at best, in the marketplace.
  
  
  
  • The rationale for this is twofold –neither pay, nor performance, is looked at on a relative basis.
    
  
  
• We believe that profitable revenue growth is the best driver of increased shareholder value and thus should form the basis of short-term incentive plan design.
  
• Long-term, relative total shareholder return is the most important metric.
  
• What have been found to be a strong predictor of company performance are:
  
  
  
  • Levels of true executive stock ownership (not beneficial ownership including vested but unexercised options.)
    
  • Broader employee stock ownership.
    
  
  

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