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Corporate Governance

: PomTalk

Report Recommends Establishing Clear Link Between Pay and Performance

By Fei-Lu Qian

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The Task Force on Executive Compensation convened by the Conference Board Governance Center to address the loss of public trust in the processes for oversight of executive compensation issued recommendations for corporations to restore credibility and public trust in pay practices and oversight. Some of the recommendations include asking companies to establish ?a clear link between pay, strategy and performance? and to provide ?compensation that is fair, affordable and clearly aligned with actual performance.?

Some supporters of the report include AFC Enterprises, Albemarle Corp., AT&T Inc., the California State Teachers? Retirement System, Cisco Systems Inc., Hewlett-Packard CO., NASDAQ OMX Group Inc., Securities Industry and Financial Markets Association and Tyco International Ltd.

Robert E. Denham and Rajiv L. Gupta, co-chairs of the Task Force believe that shareholders ?deserve to see executive compensation programs that serve shareholders? interests and are explained to shareholders in thoughtful dialogue. Implementing the compensation principles we recommend is an important step in restoring the damaged trust in American companies.?

Full post as published by PomTalk on September 24, 2009 (boomark / email).