|Strategic Pay for Future Value|
|Written by Mark Van Clieaf|
|Tuesday, 07 June 2005 19:00|
With Janet Langford Kelly
This Article (Corporate Governance Advisor - May-June/2005) is the first article in a 3 part series in the Corporate Governance Advisor.
This article challenges much of current thinking and models about executive compensation. Over 50 % of enterprise value of publicly listed companies is based on an expectation of future value to be created. Yet most executive compensation and related proxy disclosures are linked to 1 - 2 year accountabilities from current operations, and thus is really operational pay.