Setting Performance Goals for Long-Term Incentive Plans

For many companies, long-term incentives comprise the vast majority of an executive’s compensation. As such, defining metrics and setting performance goals are high-stakes activities.
This episode features Andrew McElheran, Partner and Lead Consultant at Meridian Compensation Partners, and Michael Meyer, Lead Consultant for Meridian. They discuss:
Why the three-year performance period is the industry standard, despite being too short for many companies and too long for others.
How the pandemic, ongoing market challenges like supply chain disruptions, and inflation continue to impact long-term performance goal setting.
Best practices for the goal-setting process, including incorporating a variety of reference points: internal budget data, historical performance, peer group metrics and investor and proxy advisor expectations, to name but a few.
The differences between financial and relative performance metrics and how companies evaluate relative performance.
What investors really want to see reflected across a company’s relative performance goals: evidence that executives are in it for the long haul.
… and more!
After you listen, visit MeridianCP.com to learn more about Meridian Compensation Partners.
This episode is brought to you by Meridian Compensation Partners. Learn more by visiting MeridianCP.com.
#compensation #wages #spac #equity