Overview

Executive remuneration should be clearly and directly linked to total shareholder return. The reward mix needs to incorporate explicit risk and return requirements set by the board. This, in turn, should at least require the risk and return expected by shareholders, as reflected in current share prices.

In addition, the reward level and mix needs to ensure it is able to attract and retain key people capable of achieving these objectives.

Our work typically takes into account drivers of shareholder value, the practices of competitors for capital, people, materials and customers, and the reward mix.

The reward mix comprises:

Base Salary
Annual Incentives
Long-Term Capital Accumulation
Deferred Remuneration Arrangements
Supplemental Benefits and Perquisites
Special Severance and Retirement Arrangements
Employment and Change of Control Agreements