Description
On today’s episode, we’re joined by Meridian Compensation Partners, LLC’s Christina Medland, Managing Partner, and Mike Rourke, Lead Consultant. Christina and Mike discuss executive compensation through an activist investor lens.
Key Takeaways:
(01:23) Activist investors view compensation alignment as a barometer of the pay-for-performance relationship.
(06:48) Activists flag supplemental benefits, tax gross-ups, discretionary adjustments and aspirational peer groups as concerning.
(08:11) Activists want strong links between realized pay and performance.
(13:21) Activists compare incentive targets and resulting payouts to close business comparators.
(20:17) Be transparent in CD&As using graphics and tables. Provide business context supporting pay outcomes.
(21:30) With diverging investor policies, committees must do what’s right for their business first when setting pay.
(23:15) Underperforming companies with sound business strategies and timing transparency retain more shareholder support.
Christina Medland - https://www.linkedin.com/in/christina-medland-09450b17/?originalSubdomain=ca
Mike Rourke - https://www.linkedin.com/in/mike-rourke-1668371a/
This episode is brought to you by Meridian Compensation Partners, LLC. Learn more by visiting MeridianCP.com.
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