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Corporate Governance Risk - Compensation Modeling - Compass -

Compass

Design strong, balanced executive compensation plans

Executive compensation has become a major governance concern for investors worldwide. At the same time, equity-based compensation continues to be the preferred way to attract and retain executive talent, as well as to tightly align pay with company performance. The challenge for corporate secretaries, compensation professionals and others involved in designing executive and director pay plans is how to strike the proper balance.

Modeling the cost impact of equity-based compensation is a critical element in designing any plan. Compass^™, part of Governance Analytics for Corporate Issuers, sets the standard for compensation modeling by helping you measure the cost of your equity-based incentive plans using a binomial option pricing model.

Through a simple, web-based interface, Compass helps you design plans that meet the compensation needs of your talented executives while still being sensitive to the concerns of your shareholders. Compass supports both US and Canadian compensation planning, but leveraging the appropriate models, valuations and pay data for each country and industry

Benefits of Compass

Determine the cost of your plan and to compare that cost to a benchmark based on industry pay levels, company size, and performance.
Test various grant combinations to arrive at a plan or plan amendment that will suit multiple needs
Model and adjust plan features as you prepare your proxy statement
Determine whether plan costs are in line with shareholder expectations

In accordance with our Business Practices, this solution is delivered by ISS Corporate Services, Inc. (ICS), a wholly owned subsidiary of RiskMetrics Group, Inc.