NACD Compensation Committee Chair Advisory Council: Oversight of Compensation Throughout the M&A Process

In brief: The volume of mergers and acquisitions (M&A) is expected to increase, as the world’s major economies see healthy GDP growth and investors continue to show they are receptive to smart deal making that advances company strategy. NACD and compensation consulting firm Farient Advisors convened the NACD Compensation Committee Chair Advisory Council last spring to discuss compensation considerations throughout the M&A process. From the discussion, several key takeaways emerged for the three major phases of deal making:

  1. Due diligence
  2. During negotiations
  3. Post-deal integration

This resource can help your board consider:

  • Practices for assessing compensation at the other company involved in the deal
  • Areas in which the board could request information from management, particularly as the compensation relates to the overall deal strategy
  • Approaches to gauge the impact of the overall merger

Most relevant audiences: Compensation committee members