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10 Nov. 2016 | Comments (0)

By Matteo Tonello, Managing Director, Corporate Leadership at The Conference Board Stock awards have taken up the slack of virtually every other component of pay. S&P 500 CEOs receive 47 percent of their total pay in the form of stock awards, up from a third in 2010, while in the Russell 3000 it has risen from less than a quarter of total pay to more than a third. Unfortunately, in its rules on the compilation of the Summary Compensation Table, the SEC does not require companies to distinguish stock awards from performance and time-based awards. But the reviewed incentive plan data included in this report confirms an increasing use of performance share awards, which is driven by the introduction of Say-on-Pay and shareholders’ desire to see a closer link between compensation and performance. In addition, because performance share awards are more liable to loss than fixed share awards, amounts awarded tend to be higher to mitigate this risk. Download the report for more information about challenges facing corporate compensation practitioners. CEO and Executive Compensation Practices: 2016 Edition and the full Corporate Intelligence portfolio are complimentary to members of The Conference Board and The Conference Board Governance Center. A fee may apply to non-members. (To learn more about our member benefits, email us at membership@conferenceboard.org.) The report is a collaboration of The Conference Board, Arthur J. Gallagher & Co. and MylogIQ. In his role, Matteo Tonello advises members on issues of corporate governance, risk management, corporate sustainability and citizenship. He regularly participates as a speaker and moderator in educational programs on best practices and conducts analyses and research in collaboration with leading corporations, institutional investors, and professional firms. Follow Matteo on Twitter: @MatteoTonelloNY.
  • About the Author:Matteo Tonello

    Matteo Tonello

    Matteo Tonello is managing director at The Conference Board. In his role, Tonello advises members of The Conference Board on issues of corporate governance, risk management, corporate sustainability a…

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