• Executive compensation is a matter of business strategy.

    We believe the manner in which boards select and pay executives directly impacts the company’s ability to execute. Board Advisory develops executive compensation solutions that help boards manage risk, reduce complexity and maximize organization performance.


Pay for Performance: Made Simple

With the introduction of shareholder “Say on Pay” votes, an entire industry formed to examine the relationship between executive pay and corporate performance.  Few Compensation Committees, however, really consider the definitions of what constitutes “pay” and “performance”.  And more importantly, what is missing in this analysis is whether shareholders are getting a fair return on the value of the equity that they have granted to employees. Read more

Compensation Committees and Share Buybacks

Share buybacks now represent a return of capital roughly twice the size of aggregate dividend payments, and growing. Compensation committees should closely review the relationship between buybacks and executive compensation incentives and take into consideration any intended bias in incentive payment and executive decision-making resulting from this increasingly popular capital program. Read More

The Road Not Taken

The evolution of current executive compensation and pay practices may require more and more companies to take the “road less travelled by” in order to provide superior returns to shareholders.  Pay practices continue to create heated debates among executives, boards, institutional investors and their proxy advisories (e.g., ISS and Glass Lewis).  Underlying the debate are two contrasting views about executive compensation and the economy in general – zero sum economics and expanding wealth.   Read More

Simple Incentives to Improve CEO Succession

Board members have an obligation to protect the company from gaps in executive talent by ensuring leadership continuity, particularly during times of CEO succession. While we find numerous commentaries addressing best practices surrounding the planning of succession, we believe incentives should be considered that focus on the succession result. Read More

Incentive Design for Compensation Committee Members

Board members bring of wealth of talent and experience to the companies they serve, but often have no practical exposure to the basic building blocks of effective compensation design.  Before new committee members jump into aligning incentives with company strategy, discussing “best practices” or considering accounting and tax implications, it can be very beneficial to review the concepts typically used by compensation professionals in incentive design.    Read More

Board Advisory in the News

“The key question for the board is, ‘do we need that much management in what is today a much smaller and simpler company?”‘ said Paul McConnell, managing director of Board Advisory, LLC.  Read More

CEO Pay Ratio Disclosure

Probably the biggest challenge is defining who the median employee is and calculating their pay. The rule is deceptively simple at first glance, but implementation can be fraught with complexities depending upon the company. Read more

Are You Paying for Performance or Just Paying for Results?

Paying for performance is assumed to be the objective of most pay plans. A quick read of a handful of proxy statements will likely find the phrase prominently used. The Dodd-Frank act expressly instructs the SEC to require companies to describe their pay-for performance program. However, we find many of these programs simply pay for results. Read more

2014 Trends in Executive Compensation and Governance

Our look back at executive pay and performance, and the role of the board member in 2013 and trends we see emerging in 2014. Read more

Some Pointed Questions Boards Need to Ask Themselves With Regard to Executive Compensation and the Achievement of Corporate Strategy 

For executive compensation, achievement of corporate strategy is the destination; pay levels, pay programs, and metrics provide the route. As inevitably as the Cubs missing the playoffs, the end of the year swiftly approaches and compensation committees must reflect on the year’s actions and re-check their route. With media scrutiny, regulatory oversight and the specter of derivative litigation ever-increasing, we all need to ask ourselves some pointed questions about compensation strategy. Read more


Board Advisory is proud to be a contributor of Compensation Insights produced by ICA, a national group of compensation strategy experts and advisors.

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