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	<title>The Harvard Law School Forum on Corporate Governance</title>
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	<title>Rethinking the Use of Performance Share Units &#8211; The Harvard Law School Forum on Corporate Governance</title>
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		<title>Rethinking the Use of Performance Share Units</title>
		<link>https://corpgov.law.harvard.edu/2026/08/26/rethinking-the-use-of-performance-share-units/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=rethinking-the-use-of-performance-share-units</link>
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		<pubDate>Wed, 26 Aug 2026 11:32:43 +0000</pubDate>
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				<category><![CDATA[Practitioner Publications]]></category>
		<category><![CDATA[Compensation committees]]></category>
		<category><![CDATA[Equity Compensation]]></category>
		<category><![CDATA[Executive Compensation]]></category>
		<category><![CDATA[executive pay]]></category>
		<category><![CDATA[Incentive Compensation]]></category>
		<category><![CDATA[Long-Term Incentive Plans]]></category>
		<category><![CDATA[Pay for performance]]></category>
		<category><![CDATA[Performance Share Units]]></category>
		<category><![CDATA[PSUs]]></category>
		<category><![CDATA[Restricted Stock Units (RSUs)]]></category>
		<category><![CDATA[Stock options]]></category>

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		<description><![CDATA[While many of the practices discussed are, and should remain, prominent components of pay programs, shifting investor preferences and macroeconomic challenges make this a good time for compensation committees to review their current programs and ensure they’re still the best option to drive both pay-for-performance alignment and long-term value creation. In this article, we take [&#8230;]]]></description>
				<content:encoded><![CDATA[<hgroup><em>Posted by Sam Gutenmacher, Semler Brossy, on Wednesday, August 26, 2026 </em><div class='e_n' style='background:#F8F8F8;padding:10px;margin-top:5px;margin-bottom:10px;text-indent:2.5em;'><strong style='margin-left:-2.5em;'>Editor's Note: </strong> <p style="margin:0; display:inline;"><a href="https://semlerbrossy.com/team/sam-gutenmacher-2/">Sam Gutenmacher</a> is a Consultant at Semler Brossy. This post is based on a Semler Brossy memorandum by Mr. Gutenmacher and Michelle Metros, formerly at Semler Brossy.</p>
</div></hgroup><p>While many of the practices discussed are, and should remain, prominent components of pay programs, shifting investor preferences and macroeconomic challenges make this a good time for compensation committees to review their current programs and ensure they’re still the best option to drive both pay-for-performance alignment and long-term value creation. In this article, we take a comprehensive, thought-provoking look at areas of the executive pay status quo to explore why they became industry standards, how you can determine if they’re right for your organization, and several alternative models that are emerging.</p>
<p> <a href="https://corpgov.law.harvard.edu/2026/08/26/rethinking-the-use-of-performance-share-units/#more-183492" class="more-link"><span aria-label="Continue reading Rethinking the Use of Performance Share Units">(more&hellip;)</span></a></p>
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