The Advisors' Blog

This blog features wisdom from respected compensation consultants and lawyers

March 14, 2017

ISS Observations on the “Right” Metrics

Broc Romanek

Here’s an excerpt from this blog by Roy Saliba, ISS’ Head of Global Compensation Products:

ISS observes actual payout levels for short-term performance awards and finds that the general trends in fiscal year 2015 are consistent with expectations, where 88 percent of companies achieved threshold payouts as defined by their awards, 56 percent achieved target payouts, and while only 7 percent of companies achieved maximum payouts, it is still within the range of expectations. Some differences exist between large-cap, mid-cap, and small-cap companies with S&P 500 companies having the highest achievement rates of threshold payouts and slightly lower achievement rates of maximum payouts, although all indices have achievement rates that are in line with general expectations.