Companies Are Increasingly Using Non-Financial Goals For Executive Compensation

Executive compensation has always been a difficult topic and as executive wages have grown rapidly since the financial crisis, while the wages of the average worker have stagnated, the debate around executive compensation has only become fiercer.

Companies have responded to the growing chorus of criticism by allocating a higher portion of executive compensation to stock price performance, the belief being that if managers manage to create value for stockholders, a higher salary is easily justifiable.

• Major Trends Reshaping Hedge Fund Compensation – Income Gap Grows

According to  Pay Governance LLC, an independent executive compensation advisory firm, over 80% of companies in the S&P 500 now have such performance linked incentive plans in place. Performance-based...