Performance-based Pay
Farient believes it’s time to get specific around performance-based pay.
Everyone talks about performance-based pay and proxies reference it as the holy grail of executive compensation, but in our experience, there is confusion around what pay for performance means, and what it means to align executive interests with shareholder interests.
We thought it was time to frame performance-based pay with a clear definition of what it is.
Fair pay, or aligned pay, is when total compensation after performance has been factored in, is sensitive to company performance over time, and is reasonable relative to the market for executive talent and the performance delivered.
Copyright 2011 - Farient Advisors, LLC
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Fax: +44 20 7287 8944