Independent Directors Executive Compensation Project (IDEC)
Central to the Delves Group’s approach to principles-based executive compensation and corporate governance are the compensation principles established as part of the ongoing Independent Directors Executive Compensation (IDEC) project, of which Don Delves is a founder and leader.
The Delves Group uses the IDEC principles as a starting point when working with Boards on principles-based corporate governance and executive compensation projects. Background on the IDEC project follows.
The IDEC Project
The Independent Directors Executive Compensation Project (IDEC) is a collaborative effort by leading independent directors, academics and executive compensation professionals. They are united by these four points:
- There are serious problems with executive compensation at publicly traded companies.
- Independent directors should take a leadership role in addressing this issue.
- An ongoing effort is needed to continuously define, research, develop and communicate principles and best practices.
- This effort should result primarily from a series of meetings with independent directors.
The Proposed IDEC Principles
Nearly 200 professionals have been a part of IDEC meetings across the U.S. in 2009 to discuss what should be included in the project’s principles. To date, the principles include alignment, accountability, engagement, fairness, transparency and objectivity. In addition, each principle includes key questions to consider, and possible core statements that Compensation Committees may adopt.
