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Performance Share Units Face Growing Scrutiny

Posted on April 15, 2026: By Ira T. Kay and Mike Kesner
Performance Share Units Face Growing Scrutiny

Performance share units (PSUs) are getting a lot more attention lately and not all of it is positive. This piece by Ira Kay and Michael Kesner dives into why investors and proxy advisors are starting to question how effective PSUs really are, and what that could mean for executive pay going forward. A quick, interesting read published by Directors & Boards if you’re thinking about how incentive design is evolving.

WRITTEN BY Ira T. Kay
Ira is a Managing Partner and founder with over 30 years experience and is one of the nation's foremost experts on executive compensation.
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WRITTEN BY Mike Kesner
Mike has over 40 years of experience assisting compensation committees and senior executives on executive compensation matters, including incentive plan design, succession planning, shareholder relations, and M&A. He is a thought leader and has written several articles on executive compensation.
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