September 28, 2021
Agenda – Incentivizing ‘Magic’ — How Boards Can Foster Innovative Leadership
As boards look to the post-pandemic future, innovation and growth are moving to the top of the agenda for many companies. Compensation and strategy experts suggest that boards can foster an innovative culture at their companies by attuning compensation plans to forward-looking metrics as well as offering a safe space for experimentation and the possibility of failure. Boards should play an active role in cultivating space for innovation to thrive.
Meanwhile, companies focused on innovation are also incorporating strategic factors into their compensation programs, according to Robin Ferracone, founder and CEO of compensation consulting firm Farient Advisors. Ferracone previously served as a director on the board of Trupanion.
“Investors, while they still want pay for performance, they really want pay for strategic alignment,” she said, adding that they want plans to go beyond financials without merely offering the same objectives to all participants. “They are very accepting of and actually desire companies that have plans that are really geared toward the strategy of the organization.”