Fair Pay, Fair Play: Aligning Executive Performance and Pay

Preface vii

Part One: Fair Pay 1

1. Same Problems, Different Context 3

2. Shareholder Value: A Good Indicator of Long-Term Success 23

3. The Anatomy of Performance-Adjusted Compensation (PAC) 41

4. The Performance and Pay Alignment Zone 57

5. The Alignment Report 73

6. From Maligned to Aligned 83

7. Patterns of Misalignment 91

Part Two: Fair Play 111

8. The Root Causes of Misalignment 113

9. Aggressive Target Pay 125

10. Turbo-Charged Upside 145

11. Conventional Goal-Setting 157

12. Short-Term Gain; Long-Term Pain 187

13. Flattening the Curve 199

14. Ad Hoc Decisions 205

15. Decision-Making Infl uences 217

16. Creating and Maintaining Alignment 231

Epilogue: Holding Companies Accountable 241

Appendix A: Analytic Methodologies 253

Appendix B: GICS Sectors 255

Appendix C: List of Interviewees 257

Notes 261

Acknowledgments 265

The Author 267

Index 269