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Highlights of Executive CompensationIssues at Year-end 2009
2009 Executive Compensation Issues & Concerns
The following material summarizes several recent documents and studiesregarding executive compensation and offers suggestions for evaluating yourpay practices at year-end and into 2010.
The ongoing pressure from government, regulators, shareholders and consumersmakes it imperative that all companies, especially publicly-traded, take the time tocarefully review/audit all executive pay practices, policies, pay levels, pay programdesigns and other related terms and conditions of employment.
While the current economy may suggest a wait-and-see approach until next year orbeyond, the focus and design of your executive compensation programs needs tobe addressed immediately. We, as corporations, have helped to create the messand it is up to us to fix what we can before the government fixes it for us.
Based on the national political climate as well as factors such as highunemployment, it is our view that you will continue to face continued pressure tomodify your approach to executive compensation. This is an issue that is not goingto go away any time soon.
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Sources for this Summary
This summary is based on recent studies and publications includingthe following:
Pearl Meyer & Partners Trends and Issues, 2009
Compensia Thoughtful Pay Alert, June 2009
McGuire Woods News, August 2009
Martin Rosenbaum OnSecurities.com, November 2009
James F. Reda & Associates Executive Compensation Trends for2009
Towers Perrin The New Realities of Executive Compensation,April 2009
All of these studies are worth reading in order to better understandthe scope and details of some of the initiatives now beingconsidered by regulators and Congress. However, neither thissummary nor the studies cited here are intended as a substitute forprofessional legal, tax, financial, or compensation advice.
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