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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