Executive Benefits | Executive Compensation | Corporate Governance |The Future of the Defined Contr

This talk will explore the current state of Executive Benefits | Executive Compensation , Corporate Governance & the Future of the Defined Contribution Market

Executive Benefits

Incentivizing executives to meet business objectives is a critical factor in designing executive compensation plans. Organizations can choose from several well-established methods to pay for the performance of executives, often with significant tax advantages to the executive and the employer.

It has become increasingly more important to ensure that the public and elected officials can readily grasp the reasonableness of executive compensation plans—especially in public corporations. Over the past decade, executive compensation plans have come under significant regulatory and political attack.

Each element of an executive compensation plan contains various degrees of accounting, tax and regulatory considerations. Organizations need to develop a strategy for how they will use each of these elements. The total compensation strategy should address all the elements of the executive compensation plan. SHRM

Executive Compensation

Executive compensation differs substantially from typical pay packages for either hourly workers or salaried management and professionals in that executive pay is heavily biased toward rewards for actual results. Hence if a company underperforms, the executives typically receive a smaller fraction of their potential pay. Conversely, if a company meets its annual objectives and the stock price responds long term, the executives stand to receive a much larger payout.

Typical Executive Compensation program and the most commonly used terms.

The pay packages given to the senior executives of corporations often consist of six components:

Base salary
Performance based annual incentive (bonus)
Performance based long term incentive
Benefits
Executive perquisites
Contingent Payments https://execcomp.org/
Environmental, Social, and Governance (ESG) criteria are a set of standards for corporate operations and behavior which are used by socially conscious investors to screen investments. Over the past several years, there has been a growing effort for a more mainstream incorporation of ESG factors into investment practices. The growing emphasis by investors on ESG factors has created downward pressure on companies to provide disclosures as to how ESG factors are being incorporated into business and operational decisions. This represents a dramatic shift in tactics used by those pursuing ESG objectives which for years were pushed directly on companies. Among the most commonly requested ESG elements of companies today include information on:

Climate Change
Diversity and Gender Pay Equity
Human Capital Management
Sustainability In Executive Compensation