Keeping a Tally on ‘C’ Suite Compensation

Executive compensation agreements and subsequent payouts have become so complex that these payouts often are not fully understood, even by the Boards that approve them. Tally sheets are widely being viewed by many as a much-needed tool with which companies can accurately analyze and track the immediate and long-term cost of every pay component.

“Keeping a Tally on ‘C’ Suite Compensation” summarizes the results of a recent survey by Pearl Meyer & Partners of 107 public and private firms, the majority of which are early-adopters that are currently using or considering development of a tally sheet. The report provides a useful overview of current practices, as well as a look ahead at how tally sheet use is likely to evolve. Among the highlights:

• Tally sheets typically cover only the CEO and other named executive officers, rather than all 16-b officers
• Separation and change-in-control arrangements were the most frequent focus of tally sheets, considered by nearly three-quarters of the companies
• Only about one-third of the companies using tally sheets say they share the results with their full Boards of Directors
• 75% of firms using tally sheets plan to do them annually
• Fewer than half the companies using tally sheets analyze the impact of corporate performance on incentive payments, although 67% of all respondents say such information should be included

To sign-up to receive your complimentary copy of the Executive Summary of “Keeping a Tally on ‘C’ Suite Compensation,” please click here.