Towers Watson

Long a lightning rod for shareholders and regulators, executive compensation has sparked even more controversy during the economic crisis.

From government scrutiny of executive pay in companies receiving financial bailouts to say-on-pay shareholder votes and the growing role of proxy advisory firms, there are more voices being heard in the mix than ever before.

In this climate, companies are under unprecedented pressure to get it right. They are looking to strengthen their governance processes to ensure fair and defensible decisions that align pay with performance and encourage appropriate levels of risk taking.

Getting Executive Pay Right
Marc Ullman, leader of Towers Watson's Executive Compensation practice in New York, discusses the key challenges companies face in designing effective executive pay programs in the "say on pay" era --- and why the proper alignment between pay and performance is often anything but straightforward.