If we were going to pick one principle, one concept, one word that best captures our job as executive compensation professionals, it would be alignment. The primary objective of all executive compensation programs should be to align the interests of management and owners. It should also motivate and reward excellent performance that advances the owners’ goals and objectives.
Despite alarmist headlines over the course of 2017 declaring a “retail apocalypse,” the industry produced a remarkable 43% total shareholder return (TSR) in fiscal 2018 and improved in other key growth measures. While we expect environmental challenges to persist in the retail industry, improved online sales growth coupled with the overall macroeconomic growth are causes for optimism in fiscal 2019.
Kate King and Chris Marques
Global forces are impacting executive compensation and forcing companies to rethink their pay models to reflect changing business models. As market standards and expectations change, companies must ensure that performance and how that performance is defined align with those expectations. We further examine this theme, one that was recently explored during our Executive Compensation Proxy Webcast.
Dana Furrow, Alex Pattillo, Erik Nelson and Steve Kline
This month, our Guiding Principles case studies concentrate on initial public offerings (IPOs) and spin-offs, how purpose, one of the four overarching principles, can change as ownership changes, and the challenges of aligning executive compensation with the interests of a different set of owners.
Drug pricing continues to make headlines across the U.S. A number of high-profile cases put biopharmaceutical companies under scrutiny and attracted critics who allege that the pricing of medications is driven excessively by profit considerations. In some cases, the criticism has focused on whether executive compensation — and, specifically, executive incentive programs — are either partially or wholly to blame for high drug prices.
Quang Lam and Hemant Patel
Our consulting work with many of Canada’s large oil and gas companies prompted us to look more closely at the effectiveness of long-term incentive (LTI) awards made over the past few years during a period of significant changes in oil prices.
Ryan Resch and Christina Le
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