Corporate Governance: of carrots and sticks

Shareholders, regulators and companies continue to debate whether say on pay votes – advisory or binding, mandatory or soft-law based – are effective in curbing compensation abuses.  Sodali advises clients not to be constrained by say on pay, to develop compensation plans that are needed to incentivize executives, achieve business goals and ensure alignment with shareholder interest; then to engage directly with investors to ensure a strong vote in favor.