In addition, the 2014 survey also found that just over one-half of companies (56%) reported 2014 annual incentive payouts (for 2013 performance) were above target; of the companies that paid out below target, a majority were only slightly below target (i.e., 75%-94% of target). Companies continue to set more challenging performance goals as the broader economy continues its slow recovery.
For senior executives, long-term incentives continue to be the largest component of their total compensation. Within the long-term incentive segment, performance plans now make 53% of total 2014 grant values, with stock options down to only 18%. A slight majority of companies using long-term performance awards use relative TSR measured over a 3-year period.
Additionally, companies continue to expect, and receive, strong shareholder support on Say on Pay. The great majority of companies (96%) expect to receive shareholder support well above the critical level (70%) in 2014, typically in the mid 90’s.
With over fifty associates in eight offices in
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