DLA Piper’s “Compensation committees: Best practices for paying it right”— the second in a series of three posts on the new Reg. S-K Item 402(x) equity grant proxy statement disclosure requirements (p101)—suggests equity grant practice-related considerations for compensation committees to effect their oversight responsibilities. Recommended action items encompass, among other things, the content of the committee charter, adoption of a formal equity grant policy, proper delegation of authority, timing and strategic alignment considerations, monitoring of grant impacts and market practices, and disclosure.
We reported on the firm’s first post here.