As part of L&A’s corporate governance consulting service suite, our compensation disclosure consultants assist clients across a variety of industries in the development of Compensation Discussion and Analysis (CD&A) disclosures. Leveraging extensive experience and knowledge of real-time best practices in the evolving shareholder communication platform, L&A will help you craft an effective message to your investor audience.
An effective CD&A must portray an accurate depiction of the compensation while fulfilling the guidelines and disclosure requirements of the SEC. In addition to depicting a comprehensive picture of compensation structure and executive performance measurement, it requires a Say-on-Pay vote at least once every three years.
Say-on-Pay votes allow shareholders to vote on the compensation of their most highly paid executives. Companies are then required to disclose the vote results and how they affected their compensation decisions. The CD&A also covers details about corporate employment contracts, long-term incentive plans, pension plans, stock options, and any other executive comp details.
Our team carries the flexibility to meet our clients’ unique demands and processes in developing investor disclosures. Whether our role consists of over the shoulder review and commentary, or assisting in the development of the CD&A from scratch, the end result is the same: a disclosure that effectively navigates a sophisticated environment and tells the story of compensation and performance.
Clients working with L&A can expect the following:
- Partnership with all constituencies involved in the CD&A process;
- Synopsis of up-to-date disclosure best practices, including perspective from Securities and Exchange Commission (SEC), key investor communities and shareholder advisory firms;
- Assessment/development of overall CD&A structure;
- Review/development of company performance and compensation decision-making narrative;
- Development of charts, tables and other graphics that improve the effectiveness of disclosed data;
- Customization of the CD&A to meet the unique confines of your business environment
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