June 09, 2017
This week, the Association's Center On Executive Compensation and Equilar announced a new online tool developed by the Center for assessing the prevalence of executive incentive plan metrics and their correlation with long-term shareholder value. As announced in a joint press release, the Incentive Plan Analytics Calculator (IPACsm), which is available via Equilar's online platform, helps companies assess the relationship between financial metrics and long-term shareholder value while also reviewing the prevalence of various metrics among peer companies. "IPAC gives company boards and management the ability to be more informed about the relationship between their performance metrics and shareholder value creation over time," said Shelly Carlin, Center On Executive Compensation Executive Vice President, who developed the idea behind IPAC. "This has the potential to improve the incentive design process and lead to more effective proxy disclosures." Detailed information on IPAC can be viewed here, where you will see a series of four "use cases" showing how IPAC can be used to help companies develop appropriate metrics, evaluate pay for performance alignment and improve dialogue with investors and proxy advisors on incentive plan design. If you are interested in learning more about IPAC, please contact Shelly at firstname.lastname@example.org or Ani Huang at email@example.com.