February 28, 2018
A 10-Year Review of CEO PSU Plan Payout Histories
– Broc Romanek
Here’s the teaser for this Pay Governance memo:
PSUs at many companies have now been in place for ≥10 years, which provides an opportunity to thoroughly review the historical trend in PSU payouts in order to assess critical questions regarding program success:
1. What has been the historical payout trend in PSU awards over the 10 most recently completed performance cycles (2005-2014 grants)?
2. How did the payouts for PSU awards that included relative total shareholder return (TSR) metrics compare to that of plans based entirely on operating financial results?
3. Were PSU payout trends aligned with company TSR performance over the 3-year performance period?