NACD Library

Tool to Align Executive Compensation with Long-Term Value Creation

Tool to Align Executive Compensation with Long-Term Value Creation Cover
Publication Date: March 25, 2016
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In brief: This tool, developed by Pearl Meyer, can help boards ensure that compensation plans effectively support corporate strategy and the creation of long-term value in a constantly changing business environment. It helps boards evaluate whether annual and longer-term strategic plans are in sync and what combination of short- and long-term incentives can support the company’s objectives.

This resource can help your board:
  • Designing short-term incentive plans to drive long-term results
  • Consider how projected changes in the external environment are expected to impact results
  • Decide how compensation design can reinforce value creation objectives
Most relevant audiences: board chair or lead director, compensation committee chair, and compensation committee members