We recently held a webinar for our European clients exploring executive pay challenges for the year ahead. The webinar focused on research we conducted regarding pay practices among Europe’s 100 largest companies, as well as recent governance and regulatory trends in selected European countries. (For more on this research, see “New Towers Watson Study Explores Executive Pay in the Eurotop 100,” Executive Pay Matters, October 9, 2013.)
Given the recent trend of European practices increasingly finding their way to the U.S., companies in the United States should be aware of a few developments discussed during the presentation, including:
- The bifurcation of say-on-pay votes in the U.K. into votes on pay policy (binding) and implementation (nonbinding), and the likely impact on pay practices
- The increased prevalence of longer-term vesting and performance periods on both short- and long-term incentives
- The diminishing role of relative TSR plans, particularly in the U.K.
The presenters also discussed the idea of “globalized customization” of executive pay, another idea that I believe will find its way to these shores before too long.
To access a recording of the webinar, click here.
Todd Lippincott, based in New York, is the leader of Towers Watson’s executive compensation practice in the Americas. Email firstname.lastname@example.org or email@example.com.