Executive Compensation Decision-Making in an Era of Greater Scrutiny
December 8, 2009
In a recent article, Sibson executive compensation consultants Myrna Hellerman and Serkan Sener describe their "outside-in/inside-out" approach to help organizations strengthen their executive compensation governance protocol and respond to today's executive compensation decision-making challenges. This approach employs a four-step framework under which the organization's decision-makers:
- Use publicly available documents to assemble a comprehensive understanding of the "outsider" view of the organization
- Compare outside perspectives with actual pay designs and practices to evaluate the validity of the outsider view
- Assess and address the gaps between the outsiders' perceptions and expectations and the internal reality, and then develop potential solutions to address the gaps
- Employ outside-in/inside-out audits and analyses to engage in a fact-based executive compensation decision-making and communication process
Read "Executive Compensation Decision-Making in an Era of Greater Scrutiny"