Pay for performance

Article Abstract:

Executive compensation should be simplified to performance pay. Compensation has become overblown to include inducements to work or stay with a company, based upon the fallacious assumption that executive talent is limited and no one would volunteer for such positions without compensation. In fact, highly paid executives who do not want to stay in their positions have an attitude problem which should be noticed by boards of directors. Boards should stop using complicated compensation packages to replace their job of monitoring the performance of management.

Author: Teslik, Sarah A.B.
Executives, Executive compensation

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The year of the proactive director: recent developments in the performance and compensation of outside directors

Article Abstract:

Outside directors and institutional investors appeared to have responded in 1995 to concerns raised by the SEC and others regarding director passivity. The SEC provided an example of director passivity in its report regarding Cooper Companies, Inc. Director independence and activism is most evident in the changes that have occurred in compensation committees and in director pensions. Many corporations have established independent committees for reviewing performance awards and have ended pensions for outside directors.

Author: Olson, John F., Arp, D. Jarrett
Laws, regulations and rules, Compensation management

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Integrating "extrinsics" into profit maximization: the lawyer's role

Article Abstract:

Corporate counsel can be a part of helping corporate boards meet their duty to maximize shareholder wealth. They can provide guidance for board's where regulation is absent or unclear, and can monitor board performance in relations to corporate strategic planning. They can also aid the board by providing full and accurate information.

Author: Millstein, Ira M.
Economic aspects, Corporate counsel

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Subjects list: Analysis, Management, Corporate directors, Compensation and benefits, Corporate governance, United States
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