Feature
Setting a Strategic Course
By Yves L. Doz and Keeley Wilson
What to know to avoid strategy surprises and contribute to value creation.
Trending Oversight Topics
Governance Surveys
Center for Inclusive Governance
Compensation
Why Pay-Driven Performance Doesn't Work
07/08/2024
Directorship Magazine
Executive Compensation
Pay vs. Performance
“Our compensation philosophy prioritizes pay-for-performance” is a common assertion reflected across public-company proxies and executive incentive plans. However, understanding its significance requires scrutiny of how pay programs contribute to a performance-based culture. For example, does pay drive and motivate specific performance outcomes? Or is the goal to align payouts with results, ensuring that leaders are rewarded for performance outcomes...
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John Borneman is a managing director at Semler Brossy.
Kathryn Neel is a managing director at Semler Brossy.
Riya Kale is an associate at Semler Brossy.
This article is from the Summer 2024 issue of Directorship.
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