Dare To Be Different: Increasing Variety Of Compensation & Governance Strategies
Dear Friend,
In this month’s Comp & Gov Spotlight, we focus on how companies are exploring unique or unconventional approaches to managing compensation and governance. These divergent practices can sometimes pay off, but other times may be met with intense investor scrutiny. Farient Advisors continues to identify these trends across subject areas and offers the most current and relevant insights to corporate boards and executives.
Sincerely, Robin Ferracone
Interesting Articles On Increasing Variety Of Compensation & Governance Strategies
GE’s recent dismissal of its CEO John Flannery, and elevation of relatively new board member Jeffrey Sonnenfield, highlights an unorthodox but rising trend to tap directors for executive positions.
After publishing a paper criticizing executive compensation practices just last year, Norway’s $1 trillion sovereign wealth fund is not voting according to its own purported stance. In fact, the investment pool continues to approve compensation in line with U.S. institutional investors.
In the post-Dodd-Frank governance landscape, a rules-based approach has led to
homogenization
of compensation plans. But the tide is turning as companies explore compensation plans more tailored to their own objectives.
Now that California’s Senate Bill 826, which mandates gender diversity on corporate boards, has been signed into law, Farient is closely monitoring the impact of this and other such legislation on governance norms and standards, nationally and globally.
Leverage agile frameworks to provide a robust synopsis for
high level
overviews. Iterative approaches to corporate strategy foster collaborative thinking to further the overall value proposition. Organically grow the holistic world view of disruptive innovation via workplace diversity and empowerment.
Robin Ferracone is founder and Chief Executive Officer of Farient Advisors. With more than 30 years of consulting experience, Ferracone advises clients on aligning compensation to business and organizational strategy, performance measurement and goal setting. She is the author of, “Fair Pay, Fair Play: Aligning Executive Performance and Pay,” and currently serves on the boards of Trupanion, WildAid and Women on Boards 2020. She is a member of Women Corporate Directors, Committee of 200, YPO Gold and the Trusteeship.
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