One of the core elements of corporate leadership – pay for performance – is soon to be paralyzed. But, as we propose here based on analysis of pay-for-performance of the FTSE100 companies, this mustn't be the case. If performance is measured relative to peers like in sports, executive...

The core problem of executive pay is neither shareholder votes on pay as discussed in the US and Switzerland, nor a multi-year assessment period as made mandatory in Germany by law. The core problem is non-indexed performance measurement which causes in-reversibly spiraling executive bonuses

This is an English translation with new additions from the German book contribution “Krisensichere Leistungsmessung und Bonuspläne” in “Turnaround - Navigation in stürmischen Zeiten: Maßnahmen zur Krisenbewältigung und Auswirkungen auf die Rollen von CFOs und Controllern” by the...

Neither caps nor new regulations are the solution for excessive pay: the solution is indexing operating performance. The true culprit of excessive pay was neither ineffective governance nor bad bonus plans: it was excessive performance. To be fair, performance evaluations should differentiate...

This essay proposes a framework for ESG executive compensation. It includes and integrates the common use of ESG Targets with the demonstrated advantages of Relative Performance Measurement, the credibility of ESG Rating Agencies, and the judicious use of after-the-fact Performance Evaluations....