The Conference Board has just published a 40 page report of their Task Force on Executive Compensation. The report sets forth Guiding Principles for corporate dirctors:
- Paying for the right things and paying for performance
- The ‘right’ total compensation
- Avoid controversial pay practices
- Credible board oversight of executive compensation
- Transparent communications and increased dialogue with shareholders
The appendices are interesting and include a survey of performance metrics and background on clawback policies, gross-ups and other pay practices.
Students might want to read this report along with the Conference Board’s annual Top Executive Compensation Report, a survey of the five highest paid executives in over 2800 companies and 14 industry sectors.