Post by arfanho7 on Feb 22, 2024 5:59:44 GMT -5
The similarities were especially apparent when the interlocked board members sat on the compensation committees of both companies. But those effects were only related to the ratio of base salary and incentive pay. measured success financial performance vs. other measures board interlock didn’t seem to have an effect. Firms connected through compensation consultants showed an even greater similarity in their CEO compensation contracts.
These contracts had high levels of similarity not only in their salary to incentive pay ratio but also in the way they measured performance. However the size of a consultant’s customer base made a difference—and in an unpredicted way. Gallani had expected that the more clients a consultant had the America Cell Phone Number List more similar the compensation contracts would be. In fact consultants with large customer bases actually created more individualized contracts than those with small customer bases. “To me what was most surprising was that there’s a double sided effect ” Gallani says. “There is more similarity in general with the compensation consultants but under certain conditions the similarity is mitigated.”
The next stage of Gallani’s research will focus on why that is. “That’s where I want to dive deeper ” she says. “I want to find out what drives some consultants to drive more unified solutions versus what drives some to drive more individual solutions.” Gallani also wants to look into why there aren’t more government regulations to hold compensation consultants accountable for their role in determining CEO pay. She notes that while companies often hire compensation consultants their individual names rarely appear on proxy statements.
These contracts had high levels of similarity not only in their salary to incentive pay ratio but also in the way they measured performance. However the size of a consultant’s customer base made a difference—and in an unpredicted way. Gallani had expected that the more clients a consultant had the America Cell Phone Number List more similar the compensation contracts would be. In fact consultants with large customer bases actually created more individualized contracts than those with small customer bases. “To me what was most surprising was that there’s a double sided effect ” Gallani says. “There is more similarity in general with the compensation consultants but under certain conditions the similarity is mitigated.”
The next stage of Gallani’s research will focus on why that is. “That’s where I want to dive deeper ” she says. “I want to find out what drives some consultants to drive more unified solutions versus what drives some to drive more individual solutions.” Gallani also wants to look into why there aren’t more government regulations to hold compensation consultants accountable for their role in determining CEO pay. She notes that while companies often hire compensation consultants their individual names rarely appear on proxy statements.