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:
- Due diligence
- During negotiations
- 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