Tell Your Story on Compensation

As the leading provider of executive compensation data, Equilar knows compensation.  In an ongoing effort to keep directors informed, Equilar brought concrete examples of how smart companies are going beyond SEC rules and ISS pronouncements to “tell their story” on compensation.

In the webinar, “Anticipating and Addressing Potential Negative Recommendations,” Andrew Comstock presented examples from Harsco, Staples and Starbucks and other companies to show the critical value of communicating how the board is handling compensation.

Additional charts, headlining the practices the board is undertaking, the key is showing how the board is proactive in addressing compensation issues.  “Your Board of Directors took steps during fiscal 2011 to strengthen its policies and practices regarding executive education,” was the way Headwater outlined the steps they took.

Most interesting was the way CalSTRS and BlackRock described their “opportunities for discussion.” Instead of a one-size-fits all, BlackRock said it would provide a “fair, respectful and in particular, open minded airing of views” and that it is “willing to support unconventional approaches as long as they can be expected to serve the interests of long-term shareholders.”  CalSTRs “believesthat there is an opportunity for the marketplace, issuers and shareholders to work together in the developent of a realized pay model.”

In this changing world of governance, engaging in the issues in a meaningful way brings great value.