Farient believes that of all the design features of compensation, goal setting has one of the most significant effects on alignment. Goal setting is all about striking the right balance between establishing measures and setting goals that are at once motivational to executives and accretive to shareholders. Historically, most companies set goals relative to a budget that is established from an internal perspective, which we refer to as a “mark-to-budget” approach. In contrast, we believe goals also need to be set relative to standards that support stock price increases and create shareholder value over time, which we refer to as a “mark-to-shareholder” approach.
In the latest article for her Executive Pay Watch column on Forbes, Robin Ferracone, CEO of Farient Advisors, recaps her a recent panel in which she participated, “The Global Governance Landscape: How Will It Affect Your Company?”
Farient Advisors provides international expertise by partnering with our Global Governance and Executive Compensation Group (GECN), which includes an affiliation of boutique consultancies around the world.
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The Farient Pay Tracker monitors and aggregates Say on Pay results, and provides a summary of SOP votes with easy to access/easy to read tables containing all companies with SOP votes of < 50% and 50-80%.
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