Risk assessment of executive compensation plans should become a routine, annual task for every Compensation Committee.
Risk assessment of executive compensation plans should become a routine, annual task for every compensation committee.
The intent of the executive compensation risk assessment process is the identification and prioritization of compensation plan features inducing excessive risk, misstatement of financial results or fraudulent misconduct which would enhance any employee’s compensation and trigger material harm to the enterprise. Then, the process provides for consideration and mitigation of the high-priority risks.
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