Compensation Discussion and Analysis Template
CFA Institute offers this template as a step toward making compensation communications clear and relevant to investors. To achieve these goals, the working group members agreed that the template should help issuers produce a CD&A that, like any good communications document, tells a clear and easily understood story.
Since the first edition of this template was published in 2011 by CFA Institute, many best practices in compensation discussion and analysis (CD&A) have emerged. The template aims to highlight these best practices to aid companies currently struggling with the CD&A process or with limited resources and to clarify the elements of disclosure that are most useful to investors. All companies can find something in this report to improve their communications documents.
The sections of the model CD&A are arranged in order of importance from an investor’s perspective, starting with an overview of the company’s corporate performance for the previous year and an explanation of the link between that performance and executive pay. The remaining sections delve into detail about compensation elements and decisions, compensation-setting process and policies, and other areas of interest.
Posted with permission from CFA Institute. Copyright 2015