The corporate governance paradigm has shifted dramatically when it comes to a company's executive remuneration. Management tended to take the lead in recommending pay increases, negotiating new employee contracts, and designing new incentive programs. Human resources would collect and analyze benchmark data from published surveys or the proxy statements of peers to assess the competitiveness of the current pay program and develop recommendations for the upcoming year. Finance would be responsible for identifying the performance measures that would fund incentive programs and for calibrating awards with various performance levels based on the internal budget. The picture today is strikingly different. Companies must meet the challenge of performance measurement head on to ensure that their remuneration programs are reasonable and defensible to all stakeholders. Directors and management need to partner together to make pay for performance a reality before shareholders take matters into their own hands.