In response to pressure from investors, proxy advisory firms, and the public to curb excessive executive pay practices, many companies added new pay policies and rules. Now they have the added task of ensuring that everyone abides by them.
That means more focus on internal investigations related to pay, when claims arise that executives may have broken the rules on compensation practices. The most common problem areas, according to lawyers at law firm Gibson Dunn & Crutcher, are improper reporting or authorization of perks and benefits, unreported or improper benefits from third-party transactions, and reimbursement of executive expenses.
