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Attracting, hiring, and retaining executive talent is a critical part of any organization’s talent strategy and leadership continuity. These efforts are shaped by many factors—including culture and growth opportunities—but one major lever is executive pay. Although salary, bonuses, and long-term incentives draw the most attention, this new article highlights three often-overlooked components that can significantly impact executive retention and governance: (1) Perquisites—benefits such as personal security or use of corporate aircraft that support executive productivity and safety; (2) Retirement Provisions—rules that determine how equity awards are handled at retirement, often based on age and service; and (3) Severance—pay provided upon exit, especially in reorganizations or M&A. The article includes key questions boards should ask—such as, for perquisites: What is the business purpose, and does it align with our philosophy? For retirement: Should we revisit our definition to attract mid-career talent? And for severance: Is there justification to go above or below market standards? These types of questions help ensure that non-core components of executive pay reinforce—not undermine—broader compensation, talent, and business strategies.
