10 May. 2011 | Comments (0)
- “Paying for the right things and paying for performance: It is critical that executive compensation programs link pay directly to results that help achieve the company’s business strategy, are consistent with the company’s values, and reflective of a risk profile that is appropriate in light of the company’s strategy and systemic considerations.
- Avoid controversial pay practices: These pay practices, i.e. perks, generous severance agreements, excessive golden parachutes, tax gross-ups, golden coffins, should be avoided, except in limited circumstances where special justification exists. If used, the rationale for these practices should be clearly and plainly discloses to shareholders.”