Board and Executive Compensation Governance - Advisory Investors

By: 3xcd  09-12-2011

Institutional Investors

Institutional investors and large pension funds are becoming increasingly active in corporate governance issues. Executive pay-for-performance is an issue that is coming under increased scrutiny. Institutional investors are comfortable with paying executives according to their level of performance but are outraged at paying for under-performing executives. Issues on executives being compensated for lack of performance is a key issue to institutional investors.

Our independent approach to addressing executive pay-for-performance has become increasingly important to institutional investors. We have been working with significant institutional investors on:

  • Pay-for-performance linkage of executives (CEO) to true corporate performance
  • Analyzing comparative company performance versus select competitive peer groups
  • Providing comparative compensation governance on competitive variable compensation design
  • Assessing true company performance versus pre-determined competitors

Other products and services from 3xcd


Board and Executive Compensation Governance

The CEO Compensation Audit tests compensation design; performance based compensation payout; and compares compensation to financial performance. A CEO Compensation Audit can be expanded to assess pay-for-performance linkage of other executives within the executive team of the company. A Pay-for-Performance approach ensures protection of shareholder interest and compliance with corporate governance guidelines.


Board and Executive Compensation Governance - comparitive fpa

The Coalition will also be encouraging companies to re-examine their compensation policies, their oversight of top management and the relationship of this to corporate performance.. X CD compares the audited financial data of competitive companies on multiple performance measures and provide this to our clients in a customized format for review.


Board Risk Assessment

In working with both Boards and institutional delivery of risk management and risk transfer, 3XCD has utilized its assessment vehicle to link the development of Board liability and Board risk management into assessment of risk developed by the Board of Directors. Board scrutiny has increased significantly and has developed the area of Board Risk Assessment and Board Risk Management.


Data Services

We provide this analysis and interpretations to back up our Data Services by providing rationale behind selection of peer group companies, financial comparison, actual wealth, and evaluated compensation data. X CD Data services can boost your firm's productivity and efficiency by providing you with the most concise, clear, and objective normalized financial data based on MD&A guidelines.


Performance Based Design

If the industry is performing poorly and we are the top performer, what questions do we need to ask or what direction should we take. As direction in the company changes, performance measures and performance targets may need to be modified. Company short-term, mid-term, and long-term performance drivers should relate to strategic direction. What are the appropriate performance hurdles and performance targets.