The Advisors' Blog

This blog features wisdom from respected compensation consultants and lawyers

December 26, 2017

How Investors Can Identify Companies for Excessive Pay Engagement

Broc Romanek

In this article, Stephen O’Bryne shares four analyses that can be part of an institutional investor’s toolkit:

1. Measuring realizable pay
2. Calculating market rates and estimating the expected future value of market pay to express realizable pay as a “market pay multiple”
3. Calculating “industry betas” and relative TSR adjusted for industry beta
4. Calculating pay leverage

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