This article raises several interesting questions, one of which is whether exec comp should be linked to non-GAAP metrics.
Why would businesses sign the Statement of Purpose of a Corporation without apparently following through with changes that elevated “stakeholders”?
Do you think that linking pay to ESG/CSR goals “greenwashes” exec comp or will it have a measurable impact? How would you measure the impact? How would you design an exec comp package in an increasingly ESG conscious world?
How would you determine whether executive compensation is excessive? How would you design an optimal compensation package?
What are the potential disadvantages of Tesla naming insiders to the accounting and finance positions? What are potential advantages? How would you assess the potential impact of the compensation packages?
What is the benefit to a firm for DC over DB plans? To the employee? What are balance sheet implications for the shift to DC from DB plans?
What is notable about the newly hired (at Airbnb) CFO’s background to make him suitable for the job? How do you think he will/should be compensated? Does this line of work appeal to you?
Do you think Elon Musk’s compensation package is “optimal”? For whom? How would you structure his compensation package?
The disclosure of CEO pay to the median employee pay was part of Dodd-Frank, and consequently appears to have been imposed “top-down” from Congress/regulatory agencies, rather than “bottom-up”, that is demanded by investors. Why do you think this is the case?
Tim Cook received $102 million in total compensation for the latest fiscal year. Is this about right? Too much? Too little? How would you determine what is the optimal amount and the optimal components of his pay?
If tax laws affect executive compensation in unexpected (and adverse) ways, why do you think special tax rules are imposed? If tax laws are changed again, can you make any predictions about how firms will react and change the way their execs are compensated?
What are solutions to the perceived problems of executive compensation being based on faulty performance measures and inappropriate peer firms? If you were CEO, would you agree to the changes in how your compensation would be calculated? Why or why not?
If you were to start from scratch, how would you define and design an optimal executive (CEO) pay package?
