The Executive Incentive Plan Design: Who Creates, Who Critiques?
In any company, the relationship among the management team, compensation committee and outside advisers can be complex. This dynamic interplay of parties often comes to a crescendo in the executive incentive plan design process. When a company implements an executive incentive plan design, best practices often involve four categories of involved parties: senior management (which usually includes a number of different people on the design team), the compensation committee, an audit committee representative (the “audit committee”) and the compensation consultant (the “consultant”). In the executive incentive plan design process, the question often becomes “Who creates and who critiques?” The following is a brief road map for navigating this often difficult path.
Click here for the full article written by Chris Crawford and Ian Keas, as featured in Compensation Focus from WorldatWork.