'Evolutionary' reform.

PositionCOMPENSATION - Brief article

Jeff Diermeier, president & chief executive officer of CFA Institute writes that "evolution, not revolution, is the best approach to reforming executive pay," in an article in the September/October issue of CFA Magazine.

Say on Pay. While it hasn't won universal favor in the United States, the issue has been one of the most frequent proxy proposals of recent years, and that trend is expected to continue into next year's proxy season. This coincides with CFA-member views, as most [who responded to surveys last year] want say on pay and also want boards to treat these votes to be more than merely advisory.

Pay for Performance. Where investors like to see the rubber hit the road is in circumstances where performance is poor. They want to see reduced pay, hopefully with an appropriate horizon. Compensation committees everywhere are trying to match pay with performance. U.S. companies have been required to do so since 1993 (or face tax consequences)...

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