Moving away from annual targets and cash bonuses towards 3-year targets and share-based awards has some merit but the challenge (or opportunity, really) is what measures should be adopted (financial or non-financial?) and where should the underlying targets be set (how do we know they are not for "business as usual")? Without a robust Pay-for-Performance framework, the focus will remain on paying executives less and paying executives later. Shareholders risk being left with mediocre executives and underperforming companies.

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