April 7, 2015
Pay-for-Performance Disclosure Trends
– Broc Romanek, CompensationStandards.com
Here’s a teaser of this new Towers Watson survey of pay-for-performance disclosure trends:
A new analysis of pay-for-performance disclosures among Fortune 500 companies by Towers Watson’s Executive Compensation Resources team reveals that company explanations of how pay is linked to performance vary widely — when they’re offered at all.
While the prevalence of pay-for-performance discussions in proxy statements increased steadily since Dodd-Frank was enacted in 2010, it appears to have plateaued in the last year. Just over a quarter (27%) of Fortune 500 companies provided some type of pay-for-performance discussion in 2014, which was down slightly from the 28% of companies that included such a summary in 2013.