The following post comes to us from Jon Lukomnik
of the IRRC Institute and is based on the summary of a report commissioned by the IRRC Institute and authored by Mark Van Clieaf
and Karel Leeflang
of Organizational Capital Partners and Stephen O’Byrne
of Shareholder Value Advisors; the full report is available here
Investors, directors and corporate executive management share common interests when it comes to company performance and economic value creation.
Yet, whilst this commonality is laudable, a review of performance measurement and long-term incentive plan design for USA public companies identifies that current practice is less than clear in measuring and aligning these interests in a manner that is robust and meaningful.
…continue reading: Misalignment Between Corporate Economic Performance, Shareholder Return And Executive Compensation