AN EXPLORATION INTO THE CONTENT OF THE COMPENSATION DISCUSSION & ANALYSIS DOCUMENT

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Chris Bart

DOI:10.22495/cbv5i2art1

Abstract

This paper presents the results of a survey of Compensation Discussion and Analysis (CD&A) documents from 32 publicly listed U.S. companies. Our aim was to probe the extent to which companies are providing investors, through the CD&A, with an easy to understand and complete assessment of the compensation provided to their highest paid executives. Using a detailed
content analysis, the results show that while companies are complying somewhat with regulatory requirements, they are failing to meet the intent of the CD&A, which is, to provide completeness, transparency and understanding regarding a firm’s executive compensation. A number of recommendations for change is also proposed.

Keywords: Compensation Discussion and Analysis, CD&A, Board of Directors, Compensation Committee, Corporate Governance

How to cite this paper: Bart, C. (2009). An exploration into the content of the compensation discussion & analysis document. Corporate Board: role, duties and composition, 5(2), 6-15. http://doi.org/10.22495/cbv5i2art1