March 25, 2010
Study: Performance Metrics Among S&P 500 Large-Cap Stock Companies
– Jim Reda, James F. Reda & Associates
Recently, we completed our latest performance metrics study, which provides a review of the 2009 proxies regarding choice of performance metrics, weight of long-term incentive vehicles and pay for performance curves for both short- and long-term incentive plans for 200 of the S&P 500 companies. This is a continuation of our study from last March that looked at 2007 proxies.
Not surprisingly, new market based equity such as relative total shareholder return (TSR) plans continue to emerge as the predominate way to promote performance and address shareholder criticism of traditional stock option plans. We expect this trend to continue in 2010.