I’m often asked why so many executive compensation plans look the same. The answer is that in the post-Dodd-Frank era, proxy advisor policies and even investor guidelines have created a rules-based environment within which to design executive compensation programs. This pushes most companies to adhere to a common formula, comprised of a short-term incentive plan based on two financial measures, and perhaps an individual component, coupled with two long-term incentive vehicles with three-year vesting. Conforming to this structure has helped companies stay under the radar with respect to Say on Pay votes and proxy advisor criticism. However, it has had the effect of largely homogenizing executive compensation. READ MORE