Page 785 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)
P. 785
770 Index
Compensation committee (Cont.) growth stage, 530–31
plan implementation, 600, 603–8 ideal, 535–36, 642–43
report to board of directors, 618–19 involvement of key players in, 560
report to shareholders, 611–12 making changes to, 556–58
responding to shareholder questions, market stage significance, 530–31
612–15 maturity stage, 531
review of competitive data, 603–6 maximum CEO pay, 544
review of job grades, 606 mergers and acquisitions, 545–46
secretary of, 594 minimizing manipulation of, 562
unreasonable compensation, 606–8 package structure, 547–56
and use of consultants, 609–11 pay philosophy, 597–600
Compensation Discussion and Analysis relationships by organization level, 549
report, 155–56 reviewing the structure of, 547, 561–63
Compensation distribution, 9–10 structuring pay relationships, 563–65
Compensation element, vs. market stage, teamwork, 545
27–29 threshold stage, 530
Compensation of directors, 162–63 time measured, 542
Compensation plans turnaround stage, 531
attract/retain/motivate significance, use of consultants, 560–61, 609–11
531–32 weighted vs. unweighted objectives,
change in CEO pay vs. change in 539–40
company performance, 541–42 Compensatory stock options, 148–49
change in management, 562 Competitive data, for CEO pay, 603–6
clarity of eligibility definition, 559 Competitiveness of retirement benefits,
company profitability, 563 302–5
comparing plan possibilities with desired Compounding, 432–33
objectives, 535–43 Comprehensive health insurance, 269
compensation committee, 598–600 Consumer price index, and cost of living,
creating a matrix for, 536 197–98
culture and, 545, 558 Concierge service, 245
decline stage, 531 Conference expenses, 264
degree of risk, 532–33, 542 Confidentiality agreements, and mergers
design cautions, 643–46 and acquisitions, 25
design considerations, 527–65 Conflicts of interest, by directors, 583
design template, 533–34 Consecutive three-year stock award plans,
designers of, 559–61 475–77
disclosures and communication Consequence objectives
considerations, 565–73 and performance appraisals, 203
divisional vs. corporate incentives, 542–43 Consolidated Omnibus Budget
effect of decline phase on, 563 Reconciliation Act of 1985 (COBRA)
effectiveness of, 543–44 and continuing health coverage, 276
eligibility for, 559–61 Consolidations, 18. See also Mergers
four steps to developing a strategy for, Constructive receipt
530–34 avoiding with stock appreciation rights,
goals of, 544–47 460
