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
- 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.