Compensation Strategies that Drive Value
This year's NACD Blue Ribbon Commission (BRC) study examined how boards can help drive long-term value creation for the organizations they serve. Interesting questions arise, including what is the right metric or set of metrics for determining value and what is the Compensation Committee's role in driving desired outcomes? Our panel members will discuss the merits of a variety of value drivers based on industry as well as the business lifecycle. The panel will discuss the NACD BRC findings and Pearl Meyer will share results from a recent collaborative research study conducted with Cornell University ILR School’s Institute for Compensation Studies on the effectiveness of TSR as an incentive metric and its impact as a driver of corporate performance. They will explore how the compensation committee can shape programs that align with the organization's unique metrics and goals for value creation, both in the short-term and in support of longer-term strategies. The discussion will also consider the impact of the new SEC proposed pay-for-performance disclosure regulations. Will the disclosure present a fair picture of value creation and its relationship to compensation plans? Panelists will debate whether Compensation Committee decisions will be affected by the specter of the disclosure and whether it will be harder or easier to support value creation through compensation.
Alex Wittenberg - BRC Commissioner on the Value Creation commission
Alex Wittenberg is executive director of Marsh and McLennan's Global Risk Center (GRC) and a partner with the Oliver Wyman Group. He specializes in integrating risk into strategic decision-making and financial performance and in developing models for risk mitigation, risk transfer, and risk governance. He is coeditor of Brink, a news portal focused on risk and collaboratively produced by Marsh and McLennan and Atlantic Media Strategies. He is also an editor of the Oliver Wyman Risk Journal. As leader of the GRC, he oversees research in the field of risk management, partnering with leading global organizations such as the World Economic Forum, the Organization for Economic Cooperation and Development, the Association for Financial Professionals, The National Association of Corporate Directors and the World Energy Council.
Duncan McFarland - Former member Comp Committees of Gannett Co. and NYSE
Mr. Duncan McFarland is the former Chairman and Chief Executive Officer of Wellington Management Company, a privately-owned global investment management firm. He served as Chairman and CEO from 1994 until retiring in 2004, ending a nearly 40 year career with Wellington Management. Mr. McFarland also currently serves as a trustee of The Bromley Charitable Trust and RARE, Inc., a global environmental organization, and is a director of New Profit, Inc., a non-government organization that primarily serves inner-city constituencies. He is a graduate of Yale University, where he earned his B.A. in Economics. He and his wife, Ellen, live outside of Boston. They have devoted 74 acres of land to create a nonprofit holistic and spiritual education center with yoga, meditation, counseling and healing.
Ellen Zane - Director: Brooks Automation; PAREXEL Int. Corp.; Lincare Holdings
Ellen Zane is a nationally renowned health care leader who recently retired as President & Chief Executive Officer of Tufts Medical Center and the Floating Hospital for Children. She was the first woman to run the hospital in its 218-year history. Ellen is currently a Director of Brooks Automation (NASDAQ-BRKS); a Director of Haemonetics Corporation (NYSE-HAE); a Director of PAREXEL International (NASDAQ-PRXL); and a Director of Press Ganey (NYSE-PGND). She is the Vice Chair of the Board of Trustees at George Washington University, Washington DC. Ellen is also the current Chair of the Board of Wellforce (Parent Board of Tufts Medical Center).
Theo Sharp, Moderator - Managing Director Pearl Meyer & Partners Boston office
Theo Sharp specializes in incentive plan design, deferred compensation, benchmarking, golden parachute design and evaluation, and the tax and accounting treatment of equity compensation. Mr. Sharp also has extensive experience in the design, implementation and legal aspects of retirement programs, welfare and benefits.
Prior to joining Pearl Meyer & Partners, Mr. Sharp was a Managing Director at Frederic W. Cook & Co. and a Director in the Boston office of PricewaterhouseCoopers, LLP, where he was responsible for the Total Compensation Practice. He previously headed the Compensation Strategy and Equity Incentives Practice in Boston for Arthur Andersen, LLP and practiced as an ERISA attorney. Mr. Sharp also worked at Fidelity Investments, specializing in the design of tax-exempt retirement plans.
Mr. Sharp holds a B.S. from the University of Colorado School of Business and Administration and a J.D. from Northeastern University. He is a member of the Massachusetts Bar.
Location and Time
Renaissance Boston Waterfront Hotel
606 Congress St.
Boston, MA 02210
Program: 7:30 AM - 9:00 AM
Registration Begins 30 minutes prior.