How can you manage executive pay in dual-class share companies?

4 How can you leverage board oversight in dual-class share companies?

A third challenge for managing executive pay in dual-class share companies is to leverage board oversight, especially if the board is dominated by insiders or affiliated directors. To do this, you need to establish and empower an independent compensation committee, with qualified and diverse members, that has the authority and responsibility to oversee pay policies and practices. You also need to ensure that the committee has access to independent and objective advice, such as external consultants or peer benchmarks, and that it engages with shareholders and other stakeholders on pay issues.

5 How can you benchmark pay in dual-class share companies?

A fourth challenge for managing executive pay in dual-class share companies is to benchmark pay, both internally and externally. To do this, you need to use a consistent and fair methodology, that considers the size, complexity, industry, and performance of the company, as well as the roles, skills, experience, and contributions of the executives. You also need to use multiple sources of data, such as surveys, reports, proxies, and databases, and to adjust for factors such as share class, voting power, and ownership.

6 How can you adapt to changing contexts in dual-class share companies?

A fifth and final challenge for managing executive pay in dual-class share companies is to adapt to changing contexts, such as market conditions, stakeholder expectations, and regulatory environments. To do this, you need to monitor and evaluate the effectiveness and appropriateness of pay policies and practices, and to make adjustments as needed. You also need to anticipate and respond to emerging trends and issues, such as ESG (environmental, social, and governance) factors, diversity and inclusion, and shareholder activism.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?