Corporations should “over-disclose” key elements of executive and director compensation, according to a recent Conference Board briefing.

“The rule of thumb for corporations should be to disclose,: said David Brown, author of the briefing. “Public attention may cause some organizations to experience short-term pain, but the long-term gain is greater transparency and trust.”

Some of the key elements of compensation disclosed by leading compensation committees include: annualized executive compensation; present value of executive pensions; liability in the event of either normal retirement or unexpected departures; and “overhang” of stock options and grants.

Compensation plan design is also critical, especially choosing the right measurements and comparators. A compensation committee of independent directors should develop executive compensation plans and outside experts should report to the committee.

“Compensation levels for executives and board members continue to increase, due in part to demand for their skills and experience and the increased responsibilities they now bear. But many institutional investors are more concerned about the way the levels are determined than the actual amount of compensation,” said Brown.