descriptionIssue Brief Posted on: 5/18/2016

Goal-Setting Can Make or Break Your Long-Term Incentive Program

Takis Makridis David Outlaw

With all the challenges of designing a long-term incentive program, it’s easy to overlook the importance of goal setting. But compensation committees, proxy advisors, and institutional investors are increasingly scrutinizing how companies are coming up with their threshold, target, and stretch payout goals.

In this Issue Brief, we cover a variety of techniques that companies use to set goals, explore why this task is so difficult, and provide advice for getting this crucial part of award design right.

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