Governance Matters Podcast: Taking a Successful Approach to Executive Compensation in M&As

Boards of directors play a key role when it comes to M&A transactions. Ultimately, they must determine whether the deal on the table is in the best interest of the company and its shareholders.

After a quiet 2020 as the Covid-19 pandemic took hold, M&A activity picked up last year. Today, the trading environment is again characterized by great uncertainty. At the same time, many investors have taken a more critical look at executive compensation packages and practices.

Robin Ferracone, founder and CEO of governance and compensation specialist Farient Advisors, believes uncertainty around M&A deals should be kept to a minimum and executive compensation planning is a key component of success. transactions.

In the latest episode of our podcast, host Jeff Cosette talks with Ferracone about how best for boards and governance teams to approach these issues. An important part of that, she says, is getting the right compensation packages in place for people who will leave as part of the deal, those who will stay for a limited time, and those the company wants to retain.

“With the big resignation underway, we are seeing more and more companies forming pools of shares to [keep] people in the new company and residence bonuses… possibly a special integration bonus. These can be very powerful in getting people to row in the same direction toward common goals,” notes Ferracone.

The Governance Matters podcast offers listeners insight into hot issues for corporate secretaries, general counsels and other governance professionals.

The series examines how the role of the corporate secretary and the board has evolved over time, as well as how the landscape of governance continues to change. From ESG to entity management, shareholder engagement to technology, hear from award-winning governance professionals and leading advisors on the latest public company governance issues.

Click here to listen and subscribe on Apple Podcasts, Spotify, embroiderer and sound cloud.

Helen D. Jessen