Should Cyber Security Metrics be Linked to Executive Pay?

Following an assessment by the U.S. Department of Homeland Security’s Cyber Safety Review Board that the Chinese hack of its systems in the summer of 2023 was preventable, Microsoft’s decision in May 2024 to start linking Cyber Security to executive pay has many companies wondering if this is something they need to consider.

In this webinar, led by Main Data Group General Manager Brooke Fernandez and Pearl Meyer Principal Adam Kahle, we’ll share examples from this year’s proxies on how some companies are incorporating cybersecurity metrics into executive pay plans. We’ll also share what companies should consider when developing these metrics and determining whether it makes sense to link them to executive pay. Such considerations include whether this approach makes sense for a particular industry and whether the company has a culture of following cyber security protocols (and if not, would tying it to executive pay improve its adherence to the protocols).

We’ll also look at how these metrics compare to ESG metrics and other risk management and safety goals that mining and energy companies as well as manufacturers and industrial companies incorporate into their proxy filings.  We will evaluate the considerations involved in determining if cybersecurity should be a part of companies’ ESG reporting.

At this webinar, attendees will learn about:

• The key considerations for Compensation Committees to evaluate in determining if a Cyber Security metric is appropriate for their organization.
• The different approaches to incorporating Cyber Security metrics in executive incentive plans.
• The advantages and drawbacks of incorporating these metrics into executive compensation frameworks.
• The factors that are shaping governance norms.

Join us for this webinar to gain insights into future potential regulatory developments, evolving stakeholder expectations, and future implications of Cyber Security Metrics for businesses worldwide.