October 3, 2011
The ’11 League Table: Compensation Consultant Market Shares
– Aaron Boyd, Equilar
In our “2011 Consultant League Report,” we took a look at annual reports and proxy filings of public companies to determine which consulting firms had the largest, most profitable clients, and which had the best market share in various indices, sectors, and geographic locations. Although many of the large consulting firms consistently stand atop the rankings, categorical breakdowns reveal some of the smaller shops’ unique market niches. Some of our findings:
– Frederic W. Cook and Co. led the rankings for engagement in the Russell 3000 (14.2% market share), the Fortune 1000 (20.9% market share), and the S&P 1500 (16.2% market share).
– Pearl Meyer & Partners had the highest percentage of new engagements, with 15.3% market share. Towers Watson was second, with 12.7%.
– Total Rewards Strategies had the highest average percentage of votes in favor of clients’ pay packages, with 95.7%, while Radford has the highest median percentage of those votes, with 97.2%.
Below is a sample table from the report, detailing the market share of firms engaged by the Russell 3000 (in comparison, here are last year’s numbers):
1. Frederic W. Cook & Co. – 14.2%
2. Towers Watson – 12.7%
3. Pearl Meyer & Partners – 10.8%
4. Mercer – 6.9%
5. Compensia – 5.8%
6. Pay Governance – 5.3%
6. Meridian Compensation – 5.3%
8. Radford – 4.2%
9. Hewitt Associates – 3.4%
10. Hay Group – 3.1%
Other charts in the 2011 Consultant League Report include:
– Financial Data: Firms’ client base ranked by revenue, net income, year-end market capitalization, total assets, and one- and three-year total shareholder return
– Indices: The firms with the most market share in the Fortune 1000, S&P 1500, and more
– Sectors: Eight different industry categories, from Healthcare to Financial Services
– Geography: The firms with the most market share in each of four U.S. regions
– Engagement: The market share of firms engaged by management
The complete report is provided to all Equilar Knowledge Center subscribers. Non-subscribers can request a copy of the report.