Executive Compensation: The New Long-Term Incentive Portfolio

In the realm of executive compensation, 2006 was an epic year, with the introduction of stock option expensing, a record number of shareholder pay proposals, backdating investigations and extensive new SEC disclosure rules that will make compensation decisions even more transparent. As the largest component of executive pay, long-term incentives continue to receive the greatest deliberation and scrutiny among shareholders, board members and HR executives.

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