Survey Data re Change in Control Severance Benefits
2021.02.23. Executive Change-in-Control Arrangements (from Meridien Compensation Partners) is offering a report drawn from a survey of 200 component companies of the S&P 500® index (“Study Group”). Its key findings are published and quoted here:
2019/2020 Executive Change in Control Report from Alvarez & Marsal and Equilar, with a few key findings being quoted here from the report:
2017/2018 Executive Change in Control Report from Alvarez & Marsal analyzes "the pay practices of the top 200 public companies across 10 different industries," with some key findings being quoted here from the report:
2016 Golden Parachute Report from Alvarez & Marsal begins by explaining that "Change in control benefits can include severance payments, accelerated vesting and payment of equity awards (such as stock options or restricted stock), fringe benefits, and gross-up payments for excise taxes imposed as a result of Internal Revenue Code Sections 280G and 4999." The report then provides significant survey data about golden parachute, such as:
2015.Oct.08 Change in Control Benefits - Enhanced Below NEO Level. This Towers Watson survey of 137 North American companies reports, for example, that in the event of a change in corporate control --
2015.June Change in Control Benefits. This Hay Report provides the following summary survey finding for executive-level severance (quoting from the report):
2015.Feb Change in Control Benefits - Tech & Life Sciences. This Radford "Getting it Right" Survey of 240 public and private companies provides separate date for broad-based employee severance plans, as well as those limited to executive officers. The findings for the latter group include the following (quoting from the report):
2014.Nov CIC Severance Benefits - Broad Study. A World at Work survey of 589 companies provides comprehensive data about broad-based employee severance plans, as well as those limited to executive officers. The findings for the executive group include the following:
2013/2014 Executive Severance and CEO. Here are a few highlights of this well presented "Executive Change in Control Report" by Alvarez & Marsal, drawn from data for the 20 largest companies (by market cap) in 10 different industry classifications (quoting from the report):
2013.Sept. Healthcare CEO - Severance Survey. Here are a few highlights of this well presented study by Mercer et al, drawn from 186 health care organizations:
2011.June.24 Value of "Golden Parachute" Payments Increased by 32 Percent in Past Two Years -- Study by Alvarez & Marsal. Key findings quoted here from the report:
20 11.March.14 "Contractual Versus Actual Severance Pay Following CEO Turnover" reports that "about 40% of S&P500 CEOs who leave their firm receive separation payments that are in excess of what the firm is legally required to give them based on their existing contract. Furthermore, we find that the average discretionary separation pay is around $8 million - close to 242% of a CEO’s annual compensation." ... Further, "We hypothesize that in cases when the CEO departure is voluntary, discretionary separation pay represents a governance problem."
2010.Aug.3 Relative to Employer's Market Cap. See Exequity Report:
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