Daily BriefsESG

Daily Brief ESG: A Compensation Model Should Be Created to Maximize Outside Directors’ Abilities as Necessary Talents and more

In today’s briefing:

  • A Compensation Model Should Be Created to Maximize Outside Directors’ Abilities as Necessary Talents


A Compensation Model Should Be Created to Maximize Outside Directors’ Abilities as Necessary Talents

By Aki Matsumoto

  • Outside director compensation is increasing, but there is a considerable difference in compensation for outside directors between large and small companies and between small and medium-sized publicly traded companies.
  • Every time a scandal occurs, there is a lack of shareholder-oriented management and a smattering of outside board members who turn a blind eye to the scandal.
  • A compensation model that includes equity compensation should be created to maximize the power of outside directors, with “management from the perspective of shareholders” as a necessary condition.

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