October 7, 2020
Industry-Based Compensation Survey: Interactive Tool
– Liz Dunshee
Compensation Advisory Partners is out with its annual “CAP 120″ survey – which analyzes 120 companies from ten industries, to provide a broad representation of market practice among large U.S. public companies.
CAP reviewed Annual Incentives, Long-Term Incentives, Perquisites, and Stock Ownership Guideline Requirement Provisions of these companies in order to gauge general market practices and trends. Especially helpful this year is the new interactive tool that breaks down the data by industry. Here are some of the overall takeaways:
• 84% of companies use 2 or more metrics in their annual incentive plans (ensuring a broader view of company performance and mitigates risk within the program).
• 43% of companies incorporate strategic and non-financial (including ESG – environmental, social, and governance) annual incentive measures that are unique to a company’s strategy.
• Performance-Based Long-Term Incentives are the largest portion of the LTI mix for the CEO and their use has continued to increase over time (from 46% in 2011 to 63% today, a shift from stock options to performance-based incentive awards).