When Should Shareholders Say 'Yes' on Pay?

7 Pages Posted: 2 May 2011 Last revised: 3 Jun 2011

See all articles by Ira T. Kay

Ira T. Kay

Pay Governance LLC

Aubrey E. Bout

Pay Governance LLC

Date Written: April 1, 2011

Abstract

With the opportunity to cast their vote on executive compensation in the companies they own, investors all over the industrialized world are getting a say on pay. In determining whether to support a company’s executive compensation program, investors should seek answers to three questions: Are the company’s pay and performance aligned over the long-term? Are the company’s benefits and severance programs reasonable? Do company executives have a sufficient enough mix of long-term incentives and own enough shares to align their interests with shareholders? Of course, say on pay voters will also want to ensure that both the pay opportunity is not excessive and that their company has a sound governance process relating to executive compensation.

Keywords: Say On Pay, Pay-for-Performance

Suggested Citation

Kay, Ira T. and Bout, Aubrey E., When Should Shareholders Say 'Yes' on Pay? (April 1, 2011). Rotman International Journal of Pension Management, Vol. 4, No. 1, 2011, Available at SSRN: https://ssrn.com/abstract=1829213

Ira T. Kay (Contact Author)

Pay Governance LLC ( email )

United States

HOME PAGE: www.paygovernance.com

Aubrey E. Bout

Pay Governance LLC ( email )

United States

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