Executive compensation can dramatically enhance stockholder value through effective incentives and rewards. It is also one of the most controversial subjects in corporate America.
This title from the CCH Board Perspectives Series, Building Value Through Compensation, spells out in plain language the complexities of designing executive compensation packages. Written by Paul Hodgson, one of the foremost commentators in the field, the book helps practitioners make key executive compensation decisions within the current legal, statutory and stakeholder environment.
Designed for board and compensation committee members, the book helps navigate directors through the extensive array of duties and responsibilities that are now theirs. Beginning with an assessment of the big picture, the book traces the history of executive compensation to learn how we arrived where we are today. The text also examines:
The role and duties of board and compensation committee members
The choice of compensation and performance peer groups
How to set base salary
The executive benefit package
The development and design of long-term incentives
Annual bonus plans
Employment and other agreements
Each chapter presents alternatives for all elements of compensation, along with the reasoning behind each of them and what each one aims to achieve.
Paul Hodgson is Senior Research Associate in board and executive compensation for The Corporate Library, the premier source for independent research providing corporate governance data analysis and risk assessment tools. He is the author of numerous books and research papers on executive pay, including Executive Share Incentives: Policy and Practice, The Directors' Pay Report, My Big Fat Corporate Loan, Golden Parachutes and Cushion Landings and Golden Hellos. He is the chief architect of The Corporate Library's executive and director compensation databases, which provide the most detailed analysis of executive and director compensation in the market. He has been researching and writing about executive compensation for 13 years. Eight of these years were spent in England, where he wrote and edited the Executive Compensation Review at an independent pay research firm, Incomes Data Services. While there he was also responsible for writing and researching the influential Directors' Pay Report series. He is widely quoted in the national print media as an authority on executive compensation, and has appeared on numerous television and radio stations.
2. Compensation Committee Members: Duties and Responsibilities
3. Choose Peers With Care
4. Base Salary: The Lure of the Median
5. Executive Benefits
6. Driving Performance Over the Long Term
7. Annual incentives: Driving Performance in the Short Term
8. Employment and Severerence Agreements: The Beginning and the End
9. Selling Compensation
10. Director Compensation