Effectiveness often means balancing conflicting demands to attain the right mix of reward level, components, disclosure, and flexibility. In particular:
- Do some roles, such as audit committee chairman, require a premium payment?
- Should meetings and other aspects of workload feature prominently in reward structure?
- Should equity be a component, and if so, in what form?
- Should director reward complement executive reward?
- Is there an ownership requirement?
- Should there be a more or less rigidly structured equity trading policy, process and disclosure?
Contact us for a review of director pay effectiveness.