Executive Compensation Strategies - 12 Jan 2010

The fragility of the global economy has put executive compensation and
reward under an intense spotlight, with shareholders, politicians and
the general public highly sensitive to what executives are paid. For
their part, companies argue that the amounts they pay are in line with
their executives’ efforts to navigate a difficult economic environment,
and are quite aside from the salaries needed to hire and retain the
talented people needed to reorganise the business and improve
operational efficiency. Indeed, some of the companies in receipt of
Troubled Asset Relief Program (TARP) funds in the US have seen such
individuals leave in order to seek out companies with a more favourable
compensation structure. But in response to institutional investor
concerns, companies are also striving for objectivity when assessing
remuneration packages and, in some cases, looking to set performance
targets and drive accountability for executives.



Post-recessionary restrictions



When the American Recovery and Reinvestment Act of 2009 (ARRA) came
into force, it imposed specific restrictions on the financial
institutions and companies that were in receipt of financial assistance
under

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