Compensation

Why Pay-Driven Performance Doesn't Work

By John Borneman, Kathryn Neel, and Riya Kale

07/08/2024

Directorship Magazine Executive Compensation Pay vs. Performance

“Our compensation philosophy prioritizes pay-for-performance” is a common assertion reflected across public-company proxies and executive incentive plans. However, understanding its significance requires scrutiny of how pay programs contribute to a performance-based culture. For example, does pay drive and motivate specific performance outcomes? Or is the goal to align payouts with results, ensuring that leaders are rewarded for performance outcomes...

Semler Brossy is a NACD partner, providing directors with critical and timely information, and perspectives. Semler Brossy is a financial supporter of the NACD.

John Borneman
John Borneman is a managing director at Semler Brossy.

Kathryn Neel
Kathryn Neel is a managing director at Semler Brossy.

Riya Kale
Riya Kale is an associate at Semler Brossy.

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