This roundtable discussion will explore the perspective that the most effective executive compensation programs reflect the company’s business volatility and the intentionally selected degree of risk/return alignment between shareholders’ returns and leadership compensation.
The level of uncertainty of financial outcomes (i.e., business volatility) may range from the relative predictability of a regulated utility to high stakes wagers of commodity price-driven companies or pre-revenue biotech companies that make large investments on highly unpredictable outcomes well into the future. And industry designation does not always mean similar volatility.
As a basis for effective incentive design, the compensation committee should first assess the volatility of its particular company and set the compensation philosophy concerning its executives’ risk/return proposition relative to what the shareholders are experiencing. Once the degree of risk/return alignment is articulated, incentive design alternatives will narrow and, in some cases, become obvious.
Join us for this stimulating and timely discussion, which will begin with Meridian Compensation Partners briefly providing study insights on the correlation between business volatility and related incentive program design.
Must serve on compensation committee to attend the roundtable. Complimentary registration for NACD Members on compensation committees.
Meridian Compensation Partners has a singular focus: to provide the most effective solutions and independent advice in executive compensation and corporate governance consulting. With over sixty-five associates in eleven offices in the US and Canada, Meridian provides top management, boards and compensation committees with core services that include board level advisory services, compensation program design, research and competitive market intelligence on executive pay and governance matters.
Linda Steffen has over 20 years of experience providing compensation and financial performance advice to boards of directors and top executives. She helps oversee our services on the west coast from Meridian’s Los Angeles office. Linda focuses on designing programs that align compensation with business strategy and value creation for shareholders. She addresses the full spectrum of executive and corporate governance issues, including: compensation strategies, annual and long”term incentive design, executive and director compensation benchmarking, severance and change”in”control benefits, proxy disclosure, proxy advisor perspectives, goal setting and managing successful Say on Pay vote outcomes. In addition, Linda consults on a variety of corporate transactions, including: acquisitions, mergers, spins, separations, IPOs and going”private. Prior to joining Meridian, Linda held senior consulting roles with Farient Advisors, Compensia, Towers Watson (formerly Watson Wyatt) and Deloitte. Linda also headed the compensation group at Amazon.com. Linda lived and worked in Seattle from 1999 to 2014. She began her career as a corporate banker in Chicago and San Francisco. Linda also received her MBA from University of Chicago and B.S. in Finance and Economics from Miami University.
Mathew Isakson has nearly 15 years of experience advising compensation committees and senior management on a broad range of executive compensation matters. Matthew helps oversee our services on the west coast from Meridian’s San Francisco office. Matthew’s expertise includes the full spectrum of executive and corporate governance issues companies face today, including: compensation strategies, annual and long-term incentive design, executive and director compensation benchmarking, severance and change-in-control benefits, proxy disclosure, proxy advisor perspectives, goal setting, Committee meeting process and managing successful Say on Pay vote outcomes. Matthew works with a full range of companies from pre-IPO to Fortune 100, across all industries. Matthew is a frequent speaker at executive compensation events (e.g., Corporate Board Member, Equilar, NACD). He is also on the Advisory Boards for NACD's Northwest Chapter and SVDX. Matthew holds a B.B.A. in Finance from the University of Iowa and is a Certified Executive Compensation Professional (C.E.C.P.).