Pearl Meyer On Point: Annual Incentive Plans for Top Corporate Officers

Annual incentive programs are drawing increasing attention, as companies consider how best to adapt and adjust performance goals and payouts to align with new strategies and expectations as the economy slowly recovers. They need insight to the views of the marketplace and what their peers are doing – particularly if they ultimately decide their own company’s strategies and priorities are best served by alternative practices.

The Pearl Meyer On Point Survey: Annual Incentive Plans for Top Corporate Officers provides detailed data around multiple aspects of annual incentive plan use across a variety of demographics, including employee vs. outside Directors, form of ownership, industry and company.

Of the 140 survey participants, about 89% responded as company managers and 12% as members of the Board of Directors of their company. Approximately 59% of respondents represent publicly-traded companies.

Among the issues covered:

• How financial goals compare to the organization’s internal budget
• How average payouts compare to target opportunities
• Whether expectations regarding average payouts differ between officers and Board members
• How companies set threshold and stretch performance goals relative to the target