The Council of Institutional Investors wants the SEC to do more to ensure that adjusted performance metrics aren’t used to justify excessive payouts to executives.
The council has asked the Securities and Exchange Commission to require companies to explain in their proxy statements why and how they use alternative performance metrics to set CEO compensation.
“Given the complexity in executive pay plans, and confusion about the links between pay and performance, investors need greater transparency about the measures boards use...
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(Adds new reporting beginning in paragraph five.)