Just published in Directors & Boards. The summary:
Nucor's classic incentive plan contained three elements:
1) a fixed share of profit growth ...
2) ... without limit
3) annual grant of standard stock options
The company was enormously successful because of this plan. It looks like everything that shareholders care about is imbedded in this plan. Empirical evidence strongly supports these plan elements as being good for shareholders. Yet none of them would pass muster with ISS today. Read More