In today’s briefing:
- Although Executive Compensation Has Improved, Many Managers Still Seem Hesitant to Take Risks
Although Executive Compensation Has Improved, Many Managers Still Seem Hesitant to Take Risks
- An increase in % of variable compensation in executive compensation, linked to medium-to-long-term performance targets, is expected to foster shareholder-oriented management and lead to growth of shareholder value over time.
- Some caution is needed when executive compensation is linked to TSR. The key is to ensure that executive incentive compensation is determined based on combination of medium-to-long-term performance and TSR.
- Although the proportion of performance-based and incentive compensation has been gradually increasing, it seems that many executives are still hesitant to take risks to create value.

