- "Pay for performance" should be a large component of executive compensation.
- “Performance” should be based on measurable risk adjusted criteria, matched to the time horizon needed to ensure the criteria have been met.
- Compensation should be simplified to focus on key measures of corporate performance.
- Executives should build equity in their company to align their interests with shareholders.
- Companies should limit pensions, benefits, and severance and change of control entitlements.
- Effective succession planning reduces paying for retention.
Monday 8 June 2009
Canada: CCGG publishes 'pay for performance' principles
Several years ago the Canadian Coalition for Good Governance published Good Governance Guidelines for Principled Executive Compensation. Building on this work, it last week published a document containing further guidance based on six "pay for performance" principles. These are:
Labels:
canada,
ccgg,
directors remuneration,
executive pay,
remuneration
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