Survey Data re Severance Benefits
2020.01.27 Survey Data - From Severance to Other Forms of Executive Comp. Not surprisingly, between 2x and 3x pay is the range for CEO severance in just over 80% of the top 200 public companies. Likewise, those multiples apply in 84% of the surveyed companies to a CEO's base plus bonus. How widespread is accelerated vesting of equity awards? And how do CFOs fare in comparison to CFOs. Data about these and other severance-related practices appear in this 20+ page report from Alvarez & Marsal. See generally Topical Index for Executive Comp. Survey Data.
2019.07.21 "More Organizations Are Expanding Severance Benefits, Survey Finds" from SHRM includes this helpful data for broad-based severance plans:
2018.11.12 "2018 STUDY OF EXECUTIVE SEVERANCE ARRANGEMENTS NOT RELATED TO A CHANGE IN CONTROL" by Meridian Compensation Partners, provides extensive publicly-available survey data, as indicated by the table of contents quoted here from the report:
Executive Severance Benefits
■ Executive Severance Arrangements – 10
■ Payment Triggers for Cash Severance Benefits – 11
■ Cash Severance Benefits – 12
■ Treatment of Long-Term Incentive Awards – 14
■ Key Trends in Executive Severance Arrangements – 17
Key Administrative Provisions
■ Release and Waiver of Claims – 21
■ Restrictive Covenants – 21
2016.04 Executive Severance and Change in Control Practices. See this Frederic W. Cook survey for 17 pages of excellent data about severance pay structures - both in connection with a change in control (CIC) and apart from a CIC. Here are a few representative findings to consider - quoted here from the survey:
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 Severance Benefits - Broad Study. This 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 fort he 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 Severance Relative to Employer's Market Cap. See Exequity Report:
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