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Board member contingent compensation: watch your back

Catherine M. Dalton (David H. Jacobs Chair of Strategic Management, Editor of Business Horizons, and Research Director of the Institute for Corporate Governance in the Kelley School of Business, Indiana University.)
Dan R. Dalton (Director of the Institute for Corporate Governance and Harold A. Poling Chair of Strategic Management in the Kelley School of Business, Indiana University.)

Journal of Business Strategy

ISSN: 0275-6668

Article publication date: 1 September 2006

1035

Abstract

Purpose

Examines new SEC guidelines for the reporting of “Executive Compensation and Related Party Disclosure”.

Design/methodology/approach

The study discusses the new SEC guidelines for the reporting of “Executive Compensation and Related Party Disclosure”.

Findings

The compensation of governance boards should not include contingent arrangements of any sort, certainly including stock options.

Practical implications

Provides executives with information on important factors to consider in compensating board members.

Originality/value

Of particular value to CEOs and other board members.

Keywords

Citation

Dalton, C.M. and Dalton, D.R. (2006), "Board member contingent compensation: watch your back", Journal of Business Strategy, Vol. 27 No. 5, pp. 4-6. https://doi.org/10.1108/02756660610692635

Publisher

:

Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited

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