https://knowledgewebcasts.com/know-portfolio/sec-new-pay-v-perform-guidance-co-invest-cle/
Event Summary
The new Pay versus Performance disclosures provide a huge amount of important information. Companies and investors can use the new disclosures to quantify four key dimensions of executive pay: incentive strength, pay alignment, the pay premium at peer group average performance and relative pay risk. Companies and investors can use these dimensions to assess whether CEO pay provides strong incentives to increase shareholder value, whether the cost of CEO pay taking account of performance is reasonable and whether CEO pay has excessive risk.
Stephen OByrne of Shareholder Value Advisors will show how to compute these measures and present data on these measures for more than 800 public company CEOs for the years 2020-2023. The data show that some companies have high alignment of pay and performance but many companies do not. OByrne will show that the data analysis used to quantify these pay dimensions a regression trendline relating relative pay to relative performance can also be used to show that there is a simple pay plan with annual grants of performance shares that provides a perfect correlation of relative pay and relative performance. The differences between this perfect correlation pay plan and conventional pay plans highlight three common practices that undermine pay-performance alignment.
About Stephen OByrne
Stephen F. OByrne is President and co-founder of Shareholder Value Advisors Inc., a consulting firm that helps companies increase shareholder value through better performance measurement, incentive compensation and valuation analysis. His work on measuring the strength and cost-efficiency of top management incentives has been published in the Harvard Business Review, the Journal of Investing, Conference Board Director Notes, the Journal of Applied Corporate Finance and the WorldatWork Journal. He is the co-author, with Professor David Young of INSEAD, of EVA and Value-Based Management. He was previously head of the compensation consulting practice at Stern Stewart & Co. and a Principal in the executive compensation practice at Towers Perrin.
About The Knowledge Group
Founded in November 2006, The Knowledge Group has been at the forefront of providing quality continuing education programs for lawyers, accountants, financial executives, risk and compliance specialists, human resources professionals, technology officers, and business consultants in a wide range of industries.
The Knowledge Group strives to be the best-in-class provider of continuing education by bringing forth relevant content you cant get anywhere else.
Contact:
Therese Lumbao
Director, Account Management & Member Services
The Knowledge Group, LLC
info ( @ ) theknowledgegroup dot org
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