Formulating and Implementing an Executive Compensation Strategy
Radford, an Aon Hewitt Company
The last five years have brought significant changes in the way companies structure their executive compensation strategies. Although some of these changes have been positive, they have been driven largely by external influences that do not necessarily support company performance, which should be the overarching objective of a compensation strategy.
The external influences exerting pressure on executive compensation include
• The regularity of changing policies from the institutional investor advisors
• The degree to which institutional investors have outsourced research for their proxy voting to advisors such as Institutional ...