Context

  • Large-cap publicly traded company in the utilities sector

The Issues

  • The company existed in a highly regulated environment; hence, public scrutiny of executive compensation was high
  • There was pressure for the Board to understand and explain to stakeholders the linkage between executive pay and company performance

Our Mandate

Pay for Performance Analysis

  • Prepared an analysis comparing the value of CEO realized and realizable compensation relative to the experience of shareholders over the past 10 years
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Outcome

  • Determined that over a period of strong shareholders returns, the CEO’s compensation package provided demonstrable alignment between performance and pay.
  • Presented results to the Compensation Committee, who took into consideration in the continued monitoring and design of the incentive plan