New U.S. Securities and Exchange Commission disclosure rules have lead, in part, to Towers Watson spinning off a piece of its compensation consulting business to a newly created boutique firm, Pay Governance LLC, according to John Haley, CEO of Towers Watson.
The new firm will be staffed by former Towers Watson executive compensation consultants who will serve as board-level advisors. Pay Governance LLC, will launch on July 1 and will be led by John England, Ira Kay and Richard Meischeid.
Towers Watson will transition current and former consultants to the new firm over the remainder of 2010. Additional staff may be added depending on market demand. New SEC rules require companies to expose ties with their compensation consultants by making public business relationships, including how much they pay the advisers.
The Towers Watson spin-off follows similar moves at Mercer and Hewitt.
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