The Advisors' Blog

– David Swinford, Pearl Meyer & Partners

We recently released our report, which analyzes compensation disclosures filed by 50 companies in early 2009 and compares them to our findings during the prior two years (see this blog from last Spring) to glean what they foretell about ’10 CD&As. The new report also includes data on pay disclosures by participants in the TARP. Among our findings:

– 65% of companies with performance-based cash incentive plans disclosed their specific targets, with 19% of the remaining companies giving a reason for withholding those details.
– 30% of the companies studied disclosed examining their incentive plans to ensure they do not encourage unnecessary and excessive risk-taking
– 40% of companies disclosed clawback provisions, up significantly from 28% in 2008 and 22% in 2007 (due largely to a requirement that companies receiving funds from the Troubled Asset Relief Program have clawbacks in place.)
– 74% of companies reported ownership guidelines for executive equity awards, up from 70% in 2008 and 62% in 2007.