Reining In Executive Comps


A growing number of U.S. companies are making executive pay programs and portions of executive benefit plans and severance policies more shareholder friendly.

Examining 2008 proxy statements, Watson Wyatt, a global consulting firm, found 87% of the 75 large public companies analyzed had stock ownership guidelines and requirements for executives (up from 75% in 2007), and 38% had a claw-back policy, which enables companies to recoup incentive compensation in the event the financial measures underlying the incentive plans are restated (up from 23% in 2007).

Other findings included:

  • Nearly one in four companies made or are considering changes to severance policies.
  • More than 40% amended or are considering amending their change-in-control policies.
  • A vast majority of companies set their targeted total pay and individual executive pay elements at or near the 50th percentile, bringing them more in line with their peers.


Source: Watson Wyatt, www.watsonwyatt.com.

SPONSORED REPORT

Get your clients ready for tax season

These year-end tax planning strategies address recent tax law changes enacted to help taxpayers deal with the pandemic, such as tax credits for sick leave and family leave and new rules for retirement plan distributions, as well as techniques for putting your clients in the best possible tax position.

RESOURCES

Keeping you informed and prepared amid the coronavirus crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.