Agenda – Predictive Modeling Changing the Future of Compensation

The growing use of total shareholder return (TSR) performance shares and the increased scrutiny of executive compensation plans by investors and proxy advisory firms have helped drive the increased use of analytics in executive compensation, experts say. Now, some boards are using analytics in the form of predictive modeling to stress test and improve the effectiveness of their executive compensation programs. Experts say predictive modeling can more accurately communicate to investors projected future payouts from company executive comp plans and satisfy concerns of proxy advisory firms that may be considering voting against them on future say-on-pay votes.