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About the course
New initiatives as well as growing shareholder rights and the importance of principles of responsible management are setting new requirements for how companies handle remuneration processes. In order to equip companies with capabilities to meet these new demands, the HCA Group at CBS, in partnership with Mercer Denmark, has established a new Reward Academy for professionals.
Learn how to drive executive remuneration in a new legislative environment. The purpose of the Reward Academy is to provide an opportunity for business professionals to meet and learn from each other's experiences, while being exposed to leading research and best practices in the area of executive remuneration and corporate governance. The network is offered in partnership with Mercer Denmark.
Seminar 1. The Art of Executive Compensation
During the first module, participants will be introduced to the general context of executive remuneration. First, we introduce the key concepts of corporate governance and its specific influences on executive remuneration. We will discuss questions like:
- What is “corporate governance” and why is it necessary?
- What is a) mandated and b) expected as part of a good corporate governance framework?
Then, we take a deep dive in the theories around pay-for-performance and get introduced to a multiple stakeholder view on pay. We discuss basic principle of executive compensation, reflect on effectiveness and efficiency of pay and derive three questions that explain executive compensation. Through a case discussion we raise questions about how to balance incentive remuneration effectively in recruiting and retaining top managers, while addressing shareholder concerns about executive compensation.
Industry experts will offer some practical advice on how to work with short-term vs. long-term incentives and make an effective incentive plan. We will have a general debate around questions like:
- Have incentive designs gone too far?
- Are they simply too complex to be of benefit to executives and shareholders?
- How much should we simplify if at all?
Seminar 2. Remuneration Committee: What, why, who and how?
Using a case study we will discuss how much governance / control should there be on executive pay decisions and look at the interaction between compensation committees and shareholders on issues of executive pay, particularly under the regime of "Say on Pay."
We will then zoom in on the specific mandate and purpose of Remuneration Committee (RemCo) and discuss the roles and responsibilities of the various parties who attend a RemCo. We will consider the following questions:
- What is the role and purpose of a RemCo? What makes it effective?
- Who are the various parties who attend a RemCo and what are their roles and responsibilities?
- How to be an effective internal advisor to a RemCo?
- What is the role of external advisors and what should you expect from them?
From our guest speakers/industry experts, participants will receive a hands-on advise on how to be an effective internal advisor to a RemCo.
Seminar 3. Executive Remuneration: Disclosure
This seminar is about executive compensation disclosure. We will look into
- The psychological impact of disclosure on areas such as perceived pay equity / fairness, and how this can influence individual and group behaviors.
- The evolution of executive compensation disclosure, leading into an overview of the Shareholder Rights Directive.
Using practical examples we will discuss disclosure dilemma every company faces and ways to solve it. A case study will illustrate the importance of understanding business model and management style of the organization, and discuss implications for governance policy in determining senior executives' compensation.
Industry experts will indicate where disclosure might be heading in the future (e.g. pay ratios, relocation benefits, post-vesting holding periods), and drawing on insights from the 2018/19 voting season. Participants will be offered a practical guide for managing boardroom pay disclosure and discuss some practical considerations of drafting a remuneration report, including “hot spot” issues / best practices. During group work, we will develop the toolbox for successful navigation in the waters of the new remuneration regime.
Seminar 4. Shareholder Engagement: Challenges and Solutions
At the fourth seminar we revisit the principles of effective stakeholder relationships and discuss how executives and organizations respond under external pressures. Some of the key points of our discussions are:
- Shareholders often have different aims and agendas – how can a company effectively manage these tensions and potential conflicts?
- Insights on engagement from other markets – what might we expect in Denmark?
- What level of responsibility should the media take in its shaping of public opinion?
We will learn about basic principles of crisis management. Many academics and public relations specialists have suggested that, when responding to crises, executives should make full and immediate disclosures about the circumstances surrounding the event. Corporate legal advisors, on the other hand, often caution their clients against unnecessary public statements. We will examine the pros and cons of a full disclosure policy and the circumstances in which it should or should not be used.
Our industry experts will offer practical advice on how to develop an effective engagement strategy for various internal and external stakeholder groups at the time of crisis – shareholders, proxy advisors, media etc.
Xavier is an expert in how rewarding can help organisations achieve their strategy and give them a competitive advantage. Xavier Baeten obtained a Master’s degree in Applied Economics from Ghent University in 1991 and a Master in Tax Legislation and Accountancy from Vlerick Business School in 1...
Dana Minbaeva (MBA, Ph.D. in Economics and Business Administration) is a Professor of Strategic and Global Human Resource Management at the Department for Strategic Management and Globalization, and the Vice-President for International Affairs at Copenhagen Business School. Her research on strate...
Presentation My research interests are within corporate finance and corporate governance and include many hot topics like executive compensation, incentive-based pay, pay-out policy, and corporate governance in the Danish banking sector. Much of the research has received extensive attention in t...
Presentation My research interests revolve around understanding managerial choices. In one of my projects, I elicit risk preferences of U.S. executives from their option exercising behavior and use these data to explain sorting into certain economic environments and risk-taking decisions. I am a...
Executive Remuneration, Broad-Based Performance and Rewards, Compensation & Benefits, STI/LTI, Job evaluation, IPE, Reward Strategy, Mobility, Expatriation, Flexible Benefits Work Head of Reward & Recognition @ ISS A/S Referee @ Denmark Basketball Association Group Compensation & Be...
Peter is Mercer’s European Practice Leader for executive compensation. He has 20 years’ experience advising the remuneration committees and management teams of major companies on executive compensation matters. His particular focus is on the specific tailoring of compensation to a business strate...
Ed has over 12 years’ experience advising the remuneration committees and management teams of UK and international companies (whether listed or privately-owned) on all aspects of executive remuneration, helping to ensure that remuneration reinforces business strategy, culture and long-term shareh...
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