ght is not an easy task. Finding the appropriate compensation plan to incentivize executives and drive corporate performance is an annual challenge for corporate boards. There is a myriad of factors at play. Boards must balance the need to incentivize individuals, keep compensation costs reasonable, maintain internal equity, and manage shareholder value. While directors wrestle with these factors, matters are made all the more difficult given the scrutiny executive pay now faces by shareholders, legislators, interest groups and the media. In other words, compensating executives has never been more complex.

Understanding Executive Compensation & Governance demystifies each component of pay and serves as a go-to resource for individuals in and out of the boardroom. This edition explores the full scope of executive pay, with topics ranging from setting a pay philosophy to arranging deferred compensation programs. This book also covers new and emerging trends in compensation, such as the rise of ESG, the expanding role of the compensation committee, and the use of relative metrics in incentive programs. International compensation is also included with sections on Australia, Canada, France, Germany, Japan, the Netherlands, and the United Kingdom.

The carefully selected and organized chapters address the basic areas affecting executive compensation. This book synthesizes current knowledge and best practices through a collection of articles, with relevant discussions on the advantages and disadvantages of certain pay decisions. Readers have easy access to a wide range of executive pay issues that are especially pertinent in the current debate on the topic. Relevant to any type of company, whether publicly or privately held, Understanding Executive Compensation & Governance is a must-read for any professional responsible for crafting or overseeing executive pay programs.