What Boards Should Do
Blue Ribbon Commission
Aligning Executive Compensation and Strategy Execution Shifts
Implement Recommendation 1 from the NACD 2026 Blue Ribbon Commission report: Anchor oversight on strategy, execution priorities, and outcomes.
How to use this tool: Compensation committees can refer to this tool when a strategic shift or significant external shock occurs after executive incentive plans have been approved. The guidance helps directors consider compensation alignment by clarifying what changed; testing whether current incentive measures still fit; whether adjustments may be needed; and documenting the board’s decision to maintain, modify, or apply discretion.
Start With the Alignment Question
When strategy execution shifts, the committee does not need to revisit the entire compensation philosophy. It does need to ask a direct question: Do current
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