Aligning Performance Measures and Incentives in European Companies

This report provides survey data and case studies to demonstrate that European companies are increasingly aligning executive compensation incentives to performance measures.

Document Highlights

Executive compensation has the potential to align management’s interests with shareholder goals, thereby alleviating a source of conflict. This report, based on a survey about performance-based incentive compensation, examines the critical issue of which performance measures are optimal to link to incentive performance compensation plans, and looks at obstacles to the improvement of European executive compensation plans.

Topics covered:

• Signaling Alignment via Compensation
• Increasing Variable Compensation
• Linking Performance Measures to Incentives
• Overcoming Obstacles to Alignment

Special features:

• executive summary
• case studies of SmithKline Beecham, Astra, Groupe Danone, and Commerzbank
• glossary
• sample and methodology
• over 20 charts and tables