Published in workspan - march 2011

Executive Pay in 2011

By Jim Heim

Annual proxy disclosures in 2011 will provide an unprecedented level of detail to shareholders about the how and why of executive pay decision-making. In the current economic and investor environment, and particularly given newly required Say on Pay advisory votes, companies must also be able to make a persuasive case for how these programs will drive company performance and, ultimately, promote meaningful long-term shareholder value.

A recent PM&P survey, Looking Ahead to Executive Pay Practices in 2011, provides an in-depth perspective on how companies plan to structure and oversee 2011 pay programs for their CEOs and CEO direct reports in light of the newest economic, regulatory and governance developments. The results reflect participants from 279 companies, ranging from the Fortune 50 to emerging high-growth businesses.
 

Among the issues discussed:

• Expected changes in pay levels for 2011
• Increased annual performance hurdles
• More emphasis in long-term incentives on performance-based awards
• Top Compensation Committee agenda items for 2011