May 2018: Pay and Performance Alignment

Dear Friend,

Welcome to Farient Advisors’ updated monthly newsletter, Comp & Gov Spotlight. Corporate governance has become the great umbrella for corporate compensation, performance, culture, and understanding the relationship between talent and the long-term sustainability of the business. In each issue of Comp & Gov Spotlight one of our Farient partners will address a trending market issue and weigh in on how management, directors, investors and other stakeholders might consider the challenge, opportunity or both.

This month we look at Pay for Performance Alignment. Recently, two of my colleagues spent time with CII at their Washington, D.C. offices. We learned that more than 80% of CII’s membership of pension and mutual funds continue to consider pay and performance alignment the most important issue they need to address in 2018 and beyond.

For issuers, this means that pay and performance alignment will continue to receive close scrutiny from investors. It also provides a great opportunity to get in line with best practices to make sure your company has the right metrics in place to measure performance and that your disclosures are clear, transparent, and highlight alignment of management and investor interests.

We hope you find the following stories interesting and a useful addition to your arsenal of tools during proxy season 2018.

Sincerely,

Robin Ferracone, CEO, Farient Advisors