tag:blogger.com,1999:blog-33693245.post2603792437939472553..comments2024-03-04T23:40:58.133+05:30Comments on The Big Picture: Storm over executive payThe Big Picturehttp://www.blogger.com/profile/06018983225756352176noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-33693245.post-48115101706077807322012-05-24T10:45:46.916+05:302012-05-24T10:45:46.916+05:30Whether it is the full Board that has the say or f...Whether it is the full Board that has the say or few members thereof in Remuneration Committee that signs off the appointment letter of CEO - The conundrum is how to evaluate CEOs performance?<br /><br />Financial metrics such as market share, turnover, cash profits, ROI, market capitalization, PE multiple, etc <br /><br />or<br /><br />Qualitative metrics such as governance, fraud, ethics, brand, sustainability, leadership etc. <br /><br />The latter one is the challenge, but can still be defined & articulated.<br /><br />The need of the hour is to develop an exhaustive Metrics that includes all the different parameters with reasonable weightages, based on which CEOs should be assessed and their variable pays should be paid. And furthermore, these criteria/metrics and its assessment at the end of year should be published in the annual reports (together with statement that you suggested in blog) for shareholders to assess. Research & management institutes can play a pivotal role in developing such an Exhaustive Metrics.<br /><br />Likewise, we also need a metrics to evaluate performance of Independent Directors, as some of them too take handsome sitting fees.Anonymousnoreply@blogger.com