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