Surveys - Annual Bonus
2019.08.08 Chemical Industry Analysis. This Meridian Partners alert provides significant analysis about how chemical industry performance measures (EBITDA volatility and input costs) could better factor in to the design of annual incentive plans. For instance, the alert provides statistical support for the following insight:
2019.06.19 ClearBridge 100 Report about Annual Incentive and Long-term Incentive Plans. See this 23-page report for survey data about plan design terms such as the following quoted from the report:
2018. Bank Executive Compensation. This Pearl Meyers survey provides data drawn from its online survey "conducted between August and September 2017 and the data is based on responses from 72 banks and 275 organizations overall. The results are summarized by bank asset size and primary role of the respondent (management versus board member)."
2018 Private Company Practices. See this extensive survey of 2017 annual incentive practices. Vivient Consulting and World at Work have well-presented data based on responses from 215 private for-profit companies. There are separate results for data drawn from responses by more than 110 nonprofit and government organizations.
2017.Jan FW Cook's Top 250 Report re Annual Incentive Compensation. This 20-page report is rich with date, and begins with an executive summary quoted here:
2016.May Incentive Plan Practices. This Steven Hall & Partners study provides 15 pages of data covering items such as fixed vs variable pay, types of incentives, performance targets, and long-term incentives.
2014.Feb Private Company Short-term Awards - for detailed survey results, see pages 11-18 of this world at work survey.
2013.Nov.20 Survey: Annual Incentive Plans for Top Executives. The survey results that Pearl Meyer & Partners has made available provide some interesting insights into the different approaches taken by private vs. public employers. For example, the annual incentive plans for public employers generally take a target-based approach, by a 3-to-1 multiple over formula-based pools and discretionary bonuses. By contrast, private employers use the latter approaches twice as often – indicating more heavy reliance on discretion (whether to divide a bonus pool or to make individualized awards). Interestingly, companies with revenues over $1 billion set maximum bonuses at 200% of target, while smaller companies imposed a 125% or 150% limit.
2013.July Performance Measures in CEO Employment Agreements - Academic-mathematical study by Univ. of Texas Profs. Here is a sense of the study, drawn from its opening abstract:
2013.May Annual Performance Metrics - Number and Kind - see pages 13-16 of this Meridian Partners Report for excellent detailed data. Also see page 32 of this Kenexa report for a table titled "What are the predominant metric types used in CEO incentive plans in this ﬁscal year?" - with comparative information for short-term vs long-term incentive plans for CEOs. The frames that follow provide data indicating 46% of companies rely on internal performance measures with 19% relying exclusively on comparisons to peer performance, and with 35% considering both.
2013.Jan CFO Survey – Performance Bonus Targets – see this AICPA Report (comprehensive data from 2300+ participants), and this Grant Thornton report for a table (on page 7) listing the frequency of 16 different possible performance measures, and the extent of their usage from 2008 to 2012 in determining CFO compensation.
2011.Oct. Short-term and Long-term Performance Plans (survey of 200 S&P 500 public companies). James Reda's 30+ page report is comprehensive and includes the following findings (quoted loosely from the report):
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