Exequity
  • Home
  • Advisory Services
  • Consultants
  • Newsroom
  • Careers
  • Contact

2021 Relative TSR Prevalence and Design of S&P 500 Companies

11/9/2021

 
​In this Client Briefing, Exequity explores the usage of relative total shareholder return (RTSR) within long-term incentive plans across S&P 500 companies. We examine overall prevalence of RTSR, differences in usage between industry sectors, and key design elements of these plans. ​ 

Key findings:
  • 62% of S&P 500 companies use RTSR (up 2% from 2020)
  • RTSR usage as a modifier increased 5% to 28% for 2021
  • 72% use a focused peer group and 28% use a broad index
  • 22% use the S&P 500 as the RTSR peer group

​Click here to download the Client Briefing in PDF.

2020 Relative TSR Prevalence and Design of S&P 500 Companies

7/14/2020

 
​In this Client Briefing, Exequity explores the usage of relative total shareholder return (RTSR) within long-term incentive plans across S&P 500 companies. We examine overall prevalence of RTSR, differences in usage between industry sectors, and key design elements of these plans. ​ 

Key findings:
  • 60% of S&P 500 companies use RTSR (up 2% from 2019)
  • RTSR prevalence exceeds 40% for each S&P 500 sector for the first time
  • RTSR usage as a modifier increased 2% to 23% for 2020
  • 73% use a focused peer group and 27% use a broad index
  • 23% use the S&P 500 as the RTSR peer group

​Click here to download the Client Briefing in PDF.

Making Your Bonus Plan Work

5/11/2020

 
Seemingly overnight, the COVID-19 pandemic gripped the World, and many business forecasts and operating budgets were severely impacted. Before the end of the first quarter, incentive plan performance goals were suddenly deemed unattainable. While most companies are not currently considering adjusting in-cycle incentive plan performance goals, due either to concerns about external optics or a lack of sufficient context, assessing performance for the purposes of incentive plan payouts will be a deeply deliberated topic during year-end pay discussions.  We expect that for many companies, incentive plan performance assessment is likely to include the application of backward-looking discretion, informed by a comprehensive review of a variety of quantitative and qualitative factors.  This article provides an analytical approach to support the application of discretion.

Click here to download the Client Briefing in PDF

One Approach to Making Your 2020 Bonus Plan Work

4/13/2020

 

Do you think the effect of COVID-19 has destroyed your company’s 2020 bonus plan? Many companies are taking a “wait and see” approach to how they will ultimately evaluate the impact of the pandemic on incentive plan performance goals.  When the time is right, that assessment is likely to include the application of backward-looking discretion, informed by a comprehensive review of a variety of quantitative and qualitative factors. However, many companies will likely be uncomfortable with both the ambiguity of an undefined and arbitrary “discretionary” review process, and the well-established negative connotations associated with the exercise of discretion in setting pay. As a result, many companies will be looking for well-reasoned, easily articulated approaches to applying discretion. This Client Alert offers one example of the analytical approach that companies may consider in evaluating 2020 performance while maintaining pre-COVID-19 performance frameworks.​

Click here to download this Client Alert in PDF.

    Subscribe to Exequity's Publications

    Lists*


    Learn more about Exequity publications an thought leadership 

    Categories

    All
    162(m)
    409A
    CEO Pay
    Change In Control
    Clawback
    Client Alert
    Client Briefing
    Client Update
    Compensation Design
    COVID 19
    Director Compensation
    Disclosure
    Dodd Frank
    Equity Plans
    ESG
    EVA
    FASB
    Glass Lewis
    Hedging
    Incentive Plan
    Insider Trading
    ISS
    Monte Carlo Simulations
    NQDC
    Pay For Performance
    Regulations
    Say On Pay
    SEC
    Speech
    Study
    Tax
    TSR

Services

Compensation Benchmarking, Program Design
Technical, Governance, Compliance

Transactions and Transitions

Company

Consultants
Newsroom
Exequity Tearsheet (PDF)

Contact

Careers
Offices

© COPYRIGHT 2023. EXEQUITY LLP. ALL RIGHTS RESERVED.
  • Home
  • Advisory Services
  • Consultants
  • Newsroom
  • Careers
  • Contact