Farient Alert

The Seven "Deadly Sins" for Compensation Committee Agendas in 2019

Dear Friend,

With 2019’s proxy season looming, it is time to analyze what compensation committees should expect in the year ahead – and to focus their attention. The 2018 proxy season revealed three myths about expectations for investor concerns:

  • Myth #1: “The Pay Ratio Will Be the Main Event”
  • Myth #2: “The Pay for Performance Equation Has Been Solved”
  • Myth #3: “ESG Proposals Will Wane and Never Get Shareholder Support”

With these lessons in mind, compensation committees may want to be carefully attuned to what investors and proxy advisors are saying going into 2019. For the year ahead, Farient has created a crucial list of “seven deadly sins” for compensation committee agendas:

  1. Not Re-Evaluating Your Clawback Policies
  2. Focusing Only on Your Organizational Design of Today
  3. Thinking About Director Pay Disclosure the Same Way
  4. Doing a Perfunctory Review of the Compensation Committee Charter
  5. Ignoring the War for Talent
  6. Disregarding the Elephant in the Room – the Potential for a Downturn
  7. Failing to Understand Economic Value Added (EVA)

To learn about ways you can avoid these mistakes and be properly prepared for 2019’s proxy season, download the full report.

Download Now

Sincerely,
Farient Advisors LLC

Farient Advisors LLC is an independent executive compensation, performance, and corporate governance consultancy. Farient provides a comprehensive array of services to boards of directors and management including: compensation program design, goal setting and performance measurement, pay and performance alignment, board of directors compensation, and shareholder communication among others. Farient has offices in Los Angeles and New York and covers clients in more than 30 countries through our partnership in the Global Governance Executive Compensation Group (GECN).

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