The Harvard Law School Program on Corporate Governance and the Harvard Law School Program on Institutional Investors convened its Roundtable on Executive Compensation last Thursday, June 27. This event brought together for a roundtable discussion prominent representatives of the investor, issuer, advisor, and academic communities. Participants in the event, and the topics of discussion, are set out below.
The Roundtable, which was co-organized by Lucian Bebchuk, Stephen Davis, and Scott Hirst, was sponsored by the CFA Institute and Pearl Meyer & Partners. In addition to the CFA Institute and Pearl Meyer & Partners, other sponsors were EMC Corporation, Equilar, Frederic W. Cook & Co., JPMorgan Chase, PepsiCo, Prudential Financial, Quest Diagnostics and the Society of Corporate Secretaries and Governance Professionals.
The first session of the Roundtable on Executive Compensation focused on issues relating to engagement between issuers and shareholders regarding pay arrangements. Among the issues discussed were issuer disclosure of pay arrangements, review by proxy advisors, and communications between issuers and investors.
The second session of the Roundtable on Executive Compensation focused on the terms of pay arrangements. Among the issues discussed were pay levels, the use of peer group data in determining pay levels, how pay should be measured and assessed, and the link between pay and long-term performance.
The participants in the Roundtable on Executive Compensation included: