Connecting pay to performance and communicating pay philosophy

December 2013

The core of a compensation committee’s responsibility is to set the pay of executives in light of the company’s and the executives’ own performance. At the CCLN meeting on November 12 and 13, members discussed the challenge of defining corporate executive performance and linking pay to it, as well as the difficulty inherent in communicating pay decisions internally and externally. This ViewPoints briefly highlights member perspectives on these issues.