NACD releases framework to define supplemental executive compensation

NACD developed the pay-for-performance principles and definitions to help guide companies and boards as they prepare for the 2014 proxy season

As a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act and new rules stemming from the legislation, public companies are faced with clearly defining supplemental compensation for executives. As corporate directors gear up for this year’s proxy season, the National Association of Corporate Directors (NACD) has released a proposed framework to address this much talked-about say on pay issue.

NACD developed the pay-for-performance principles and definitions to help guide companies and boards as they prepare for the 2014 proxy season, and as part of their broader shareholder engagement programs. The association recommends boards employ the following when defining supplemental executive compensation:

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Erin E. Harrison

Erin E. Harrison is the Editor in Chief of InsideCounsel magazine. Harrison’s professional background includes extensive expertise in both print and online media, highlighted by...

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