“As part of an initiative to empower boards and shareholders to communicate more effectively in the area of executive compensation,” reports MarketWatch, “the National Association of Corporate Directors (NACD) will produce a guide that helps boards develop pay plans to effectively compensate executives and articulate how these plans create long-term value for shareholders.” The association has sought input on key elements of compensation strategy from a delegation of Fortune 500 directors from its Compensation Committee Chair Advisory Council. Others who have provided helpful tips include representatives from large institutional investors and governance advisors. NACD President and CEO Ken Daly remarks, “This guide will address investors’ needs to better understand companies’ strategies regarding compensation, talent management and investor communications, in addition to improving proxy disclosures and peer group definitions.”
NACD announces plan for CEO Compensation Guide at advisory council meeting
The National Association of Corporate Directors will produce a guide to help boards better align succession and compensation plans to create long-term shareholder value.
June 22, 2012