Shifting Performance-Based Pay & DEI Programs
Welcome to this week's news brief.
ISS?is thinking about?shifting its approach to assessing performance-based equity pay, according to the influential proxy advisor's head of U.S. compensation research. He told Agenda that investors have grown concerned about how these equity awards are being used and whether they're effective.
The proxy advisory firm and other big investors have long touted the benefits of performance-based comp. Now, ISS says investors are reconsidering their stance, asking whether performance-based equity really is a better motivator than time-based stock, for instance.
That's why the proxy advisory firm is taking a closer look at performance-based equity comp going forward, the ISS comp head told Agenda. Starting this year, it will apply more scrutiny to disclosures of the awards and their design, especially when it detects a qualitative pay-for-performance misalignment at the company.
DEI Pivot
As political winds shift,?some companies are reworking elements?of their diversity, equity and inclusion programs. The biggest changes are around language used to describe the initiatives, sources told Agenda. About half of executives polled by?The Conference Board?recently said their company is reworking internal or external communications on DEI.
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