"Goldilocks and Risk-Based Compensation: Why This Proxy Season May Not Be a Fairy Tale"

With the wave of rules, pronouncements, suggestions, and best practices relating to executive compensation that were issued during the past year, whether by governmental agencies, industry associations, shareholders’ rights groups, multinational organizations, a pay czar or otherwise, compensation committees sometimes may have felt like Goldilocks in the home of the three bears – struggling to identify compensation policies, programs and processes that are “just right” – that appropriately align risk and reward and that will satisfy shareholders, regulators, and employees.

This Stroock Special Bulletin looks at some of the recurrent themes that decision makers will want to consider.