The Conference Board uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. Detailed information on the use of cookies on this site is provided in our cookie policy. For more information on how The Conference Board collects and uses personal data, please visit our privacy policy. By continuing to use this Site or by clicking "OK", you consent to the use of cookies. 

11 Jun. 2010 | Comments (0)

Another week, another conference as the spring corporate governance season kicks into full gear. This week I attended the 2010 Executive Compensation Conference: Everything Directors and Senior Executives Need to Know About Effective Risk and Reward Sharing, which focused on risk assessments, SEC proxy disclosures, Say on Pay and compensation principles. While the nearly 100 attendees at the June 9-10 conference at New York City’s Intercontinental Barclay were engaged on all those topics, there was one takeaway I thought many directors should most certainly have. It is a sample “Compensation Placemat” that was shared by Janet M. Clarke, a compensation committee chair with ExpressJet Holdings and Asbury Automotive Group.placemat What’s a compensation placemat, you may ask? It’s a one-page document that fits into a board book. The placemat (it’s called that because it literally looks like a menu placemat you see in diners) is a quick read of a company’s executive compensation plan complete with the executive pay strategy; a list of peer group revenue, earnings and market value; the company’s officer compensation, a description of the annual incentive and long term incentive plans; the company’s run, or burn, rate (Equilar definition: the sum of options granted and options assumed divided by total shares outstanding.); share ownership guidelines; termination provisions; and director compensation, including retainers, chair premiums and long term incentives. The particular example that Clarke shared during the panel on how boards can engage management to improve risk management and incentive compensation was put together by Semler Brossy Consulting Group LLC. It is based on an actual compensation placemat for a health care company. I have included a link to a larger version of the placemat here and in the image above. It’s a shared file using Adobe’s file sharing program.
  • About the Author:Gary Larkin

    Gary Larkin

    Gary Larkin is a research associate in the corporate leadership department at The Conference Board in New York. His research focuses on corporate governance, including succession planning, board compo…

    Full Bio | More from Gary Larkin

     

0 Comment Comment Policy

Please Sign In to post a comment.

    Subscribe to the Governance Blog
    SUBSCRIBE

    OTHER RELATED CONTENT

    RESEARCH & INSIGHTS

    Proxy Voting Analytics (2016-2019)

    Proxy Voting Analytics (2016-2019)

    December 19, 2019 | Research Report

    The Conference Board Economics Watch<sup>®</sup> European View

    The Conference Board Economics Watch® European View

    December 18, 2019 | Economics Watch Reports

    WEBCASTS

    CONFERENCES & EVENTS

    Performance Management Conference

    Performance Management Conference

    December 08 - 09, 2020 | (New York, NY)

    2020 Succession Management Conference

    2020 Succession Management Conference

    November 05 - 06, 2020 | (New York, NY)

    The 2020 Executive Compensation Conference

    The 2020 Executive Compensation Conference

    October 22 - 23, 2020 | (New York, NY)

    Maternity through End-of-Life Health Care

    Maternity through End-of-Life Health Care

    June 25 - 26, 2020 | (New York, New York)

    COUNCILS

    BLOGS

    PRESS RELEASES & IN THE NEWS