Reconsidering the Role of Performance-Based Equity

2024 could mark a pivotal moment for executive compensation practices. Both ISS and Glass Lewis—powerful proxy advisors and long-time believers that companies should deliver at least 50% of executive long-term incentives (LTI) in performance-based vehicles—are now seeking feedback on this standard. For the first time, through their annual policy survey, each asked for feedback from investors, issuers, and other advisors as to whether the standard ought to be relaxed in its current form. Depending on how this discussion takes place over the next several years, this could signal a major shift in executive compensation practices. Read Pearl Meyer’s analysis on the topic here.