What is Driving Executive Compensation – a US perspective
13 March 2014
Meeting Time: 17.00 - 20.00
With the continuing high volume of two way executive movement across the Atlantic, the issues which are topical around the broader North American economy and those which affect senior level compensation in the US are clearly of real interest to those of us based in the UK.
Opening our discussion meeting, Tom Clougherty described the current economic/political backdrop in the US which are developing a number of threads which are pertinent in the context of executive pay. These will include:
- The growing unease about inequality
- The notion that the US has entered a period of ‘great stagnation’ in which growth and opportunity will be inevitably limited
- The possibility that anyone who is not highly skilled or a capital owner will soon be replaced by technology
- The more general US domestic issues such as healthcare and urban decay.
Following from Tom’s scene setting David Swinford addressed some of the issues which will impact specifically on the debate around executive pay in the US including:
- Aligning pay with performance
- The social implications arising from the absolute levels of executive pay
- SECC regulations requiring disclosure of executive and other levels of pay ratios
- The global marketplace for executive talent and the impact of emerging economies
- The influence of investors on the executive pay debate
- Convergence between US and UK executive compensation practices.