How can you ensure your executive pay disclosures are accessible to all stakeholders?

1 Know your audience

The first step to creating accessible executive pay disclosures is to understand who your audience is and what they want to know. Different stakeholders may have different interests, concerns, and levels of familiarity with your company and its pay practices. For example, shareholders may focus on how your pay aligns with performance and strategy, employees may look for fairness and consistency, regulators may check for compliance and transparency, media may highlight controversies or trends, and the public may compare your pay with social norms or expectations. Therefore, you should tailor your disclosures to address the needs and questions of each audience, and use appropriate language, tone, and format.

2 Follow the guidelines

The second step to creating accessible executive pay disclosures is to follow the relevant guidelines and standards for your industry, jurisdiction, and market. Depending on where you operate and list your shares, you may have to comply with different rules and regulations regarding what, how, and when you disclose your executive pay. For example, in the US, you have to file a proxy statement with the SEC that includes a compensation discussion and analysis (CD&A) section, a summary compensation table, and other required tables and narratives. In the UK, you have to publish a directors' remuneration report that includes a policy report, an implementation report, and a single figure table. You should familiarize yourself with the guidelines and follow them closely to avoid penalties, errors, or omissions.

3 Be clear and concise

The third step to creating accessible executive pay disclosures is to be clear and concise in your presentation and explanation of your pay practices. You should avoid using jargon, acronyms, or technical terms that may confuse or alienate your audience. Instead, you should use plain and simple language that anyone can understand. You should also avoid using long and complex sentences or paragraphs that may bore or overwhelm your audience. Instead, you should use short and simple sentences or paragraphs that convey your main points effectively. You should also use headings, subheadings, bullet points, tables, charts, or graphs to organize and illustrate your information visually.

4 Be comprehensive and consistent

The fourth step to creating accessible executive pay disclosures is to be comprehensive and consistent in your coverage and comparison of your pay practices. You should provide enough information to give your audience a complete and accurate picture of your executive pay, including its components, structure, rationale, benchmarks, targets, outcomes, and changes. You should also provide enough information to enable your audience to compare your executive pay with your peers, competitors, industry, or market. You should also ensure that your information is consistent across different sources, channels, and periods, and that you explain any discrepancies or deviations.

5 Be transparent and accountable

The fifth step to creating accessible executive pay disclosures is to be transparent and accountable in your disclosure and dialogue with your stakeholders. You should disclose not only the facts and figures, but also the assumptions, judgments, and decisions behind your pay practices. You should also disclose any risks, challenges, or controversies related to your pay practices, and how you address them. You should also engage with your stakeholders proactively and constructively, and seek their feedback, input, or approval on your pay practices. You should also respond to their questions, concerns, or criticisms openly and respectfully, and demonstrate your commitment to continuous improvement.

6 Review and refine

The sixth and final step to creating accessible executive pay disclosures is to review and refine your disclosures regularly and periodically. You should check your disclosures for accuracy, completeness, clarity, conciseness, comprehensiveness, consistency, transparency, and accountability, and make any necessary corrections, additions, or revisions. You should also monitor the trends, best practices, and expectations in executive pay communication and disclosure, and update your disclosures accordingly. You should also measure the effectiveness and impact of your disclosures, and seek ways to enhance your disclosure strategy and process.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?