Incentive Compensation and the ERM Person/ Actuary

I have been in the unusual position of being from an actuarial background and chairing the compensation committee of a publicly held entity. Over the last four years our compensation committee has attempted to achieve several objectives in our compensation approach for the CEO and for the named executive officers that appear in the proxy:

1. Motivate and Compensate for good performance
2. Retain good people
3. Limit compensation to a reasonable amount
4. Satisfy the requirements of the proxy advisory agencies such as Institutional Shareholder Services (ISS), Glass-Lewis, and others
5. Receive a positive vote on Say-on Pay.
6. Exercise good risk management
7. Other less important objectives

Keywords: Incentive Compensation, Risk Management