All businesses, public and private alike, feel pressure – whether from the media, regulatory agencies, institutional investor bodies, shareholders or those concerned about internal pay equity – to ensure that their executive remuneration programmes are responsible, defensible and aligned with the business strategy.

In order to assist the key stakeholders – remuneration committees, finance, human resources and legal departments – Mercer has outlined seven key steps that form the basis of our minimum analytic standards for effective executive remuneration decision making.

Mercer’s minimum analytical standards:

In this issue, answers to:

• What are the seven steps to effective executive remuneration decision making?
• What should companies consider when developing a peer group?
• How can companies use disclosed remuneration data and relevant survey data to support pay decisions?
• How should companies validate the alignment of pay and performance?
• What should companies consider when using equity for remuneration?
• What are the four key elements to consider as part of holistic executive remuneration decision making?

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