Even Executive Pay Is Being Disrupted at Tech Giants

Bloomberg: Even Executive Pay Is Being Disrupted at Tech Giants Like Amazon

August 15 2016

by Anders Melin

Excerpt:

Paying in stock rather than cash helps boards align management rewards with performance and tying those grants to specific financial or operational milestones can reinforce that approach. Yet for businesses in hot industries like tech, boards may prefer plans that don’t reveal company targets and that help retain highly sought-after executives by guaranteeing their potential payouts.

“A pay program that isn’t strictly bound to a formula gives the board more latitude to adjust to situations in real time,” said Steven Hall Jr., a consultant at executive compensation advisory firm Steven Hall & Partners. “And how much detail do you really want to disclose in proxy filings and reveal to competitors?”

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