Chief HR Executive Compensation Report

$\"Chief-HR-Compensation-Trends-Report\"$ The analysis presented in Equilar’s 2007 Chief HR Executive Compensation Report is derived primarily from data disclosed in fiscal year 2005 and 2006 SEC filings for publicly traded companies in the Russell 3000 index.

The specific companies covered by this analysis include the 161 Russell 3000 firms which disclosed compensation data for Chief HR Executives in 2006.

Annual Revenue

In fiscal year 2006, publicly traded Russell 3000 companies with a Chief HR Executive listed in the Summary Compensation Table had median annual revenues of approximately $1.2 billion. From 2005 to 2006, median annual revenues increased by 8.7 percent.

Net Income

Similar to annual revenues, net income for Russell 3000 companies with a Chief HR Executive listed in the Summary Compensation Table increased from 2005 to 2006, rising by 26.5 percent.
In fiscal year 2006, these firms had a median net income of approximately $63.7 million.

Fiscal Year-End Market Capitalization

In 2006, Russell 3000 companies with a Chief HR Executive listed in the Summary Compensation Table had a median fiscal year-end market capitalization of approximately $1.3 billion, up 8.3 percent from the prior year.

Employees

From 2005 to 2006, the median number of persons employed by Russell 3000 companies with a listed Chief HR Executive increased by 2.4 percent, rising from 4,200 to 4,300.

[click here for the full report]

January 14th, 2010 in compensation research | tags: compensation data, compensation research, executive compensation, executive compensation plans, executive pay packages, HR Executive Compensation | No Comments

CD&A Overview

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An examples-based review of key CD&A elements

With CD&A disclosures entering their second year, numerous questions still remain regarding the appropriate structure and design of executive compensation disclosure.

The SEC\’s recent round of comment letters now provide compensation professionals, consultants and directors with a new set of challenges and a renewed sense of urgency in dealing with these issues.

In particular, companies face increased pressure to improve transparency on performance-based compensation and to answer the question of \’why,\’ in addition to the questions \’how\’ and \’when.\’

Fortunately, with the bulk of public companies having now submitted their first CD&A, we can, unlike last year, draw important insights from a wealth of available information.

[Click here to download the 2007 CD&A Overview]

November 23rd, 2009 in compensation research | tags: cd&a overview, compensation professionals, compensation research, executive compensation, performance benchmarking | No Comments

CEO Benefits & Perquisites Report

2007 Equilar CEO Benefits Perquisites Report

The 2007 proxy season ushered in a new generation of executive and director compensation disclosure. Among the many changes introduced for the first time, the Securities and Exchange Commission’s (SEC) new disclosure regulations significantly altered the manner in which executive benefits and perquisites are disclosed.

First, information on executive benefits and perquisites was consolidated into a single column of the Summary Compensation Table. Next, entirely new disclosure sections of the proxy give more visibility into accumulated pension benefits and deferred compensation plan balances. Last, the disclosure threshold for the aggregate value of executive perquisites was lowered.

The SEC’s new disclosure rules forced companies to provide an unprecedented amount of detail on the nature and value of executive benefits and perquisites in 2007, and,as a result, executive perquisites remain in the spotlight. It is against this backdrop of expanded disclosure that Equilar presents the 2007 CEO Benefits and Perquisites Report. This report offers an in-depth analysis of the following key benefits and perquisites offered at Fortune 100 companies:

Financial Planning and Other Professional Services;
Flexible Perquisite Accounts;
Personal and Home Security;
Personal Use of Corporate Aircraft; and
Tax Reimbursements.

In addition, this year’s expanded report includes sections on retirement benefits and highlights trends among companies that have eliminated perquisites in the last year. As companies enter into a new era of disclosure, this comprehensive review of benefits and perquisites is an invaluable tool for compensation professionals developing compensation packages for their own executives.

November 11th, 2009 in compensation research | tags: 2007 executive compensation, ceo benefits, ceo perquisites, compensation disclosure, compensation packages, compensation professionals, compensation research, deferred compensation plan, director compensation, executive benefits | No Comments

Executive Stock Ownership Guidelines Report

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Shareholder pressure for improved alignment of executive and shareholder interests has led, in part, to increased use of executive stock ownership guidelines and holding requirements.

This trend, in conjunction with improved transparency in corporate governance disclosure, has generated a wealth of new information on the prevalence and design of stock ownership policies.

Furthermore, the SEC\’s new compensation disclosure regulations include the requirement for disclosure of corporate policies on stock retention and hedging in the new Compensation Discussion and Analysis (\”CD&A\”) section, ensuring continued public discussion of ownership guidelines and holding requirements for years to come.
Although different in structure, both ownership guidelines and holding requirements encourage executives to develop a sizable equity stake in the companies they lead. Ownership guidelines generally establish stock acquisition goals that executives must achieve within a specified period of time, typically over three to five years.

Holding requirements call upon executives to retain a certain percentage of shares acquired through the exercise or vesting of stock options, restricted stock, and other equity awards.

With disclosure of these policies on the rise, Equilar reviewed trends in the prevalence and design of executive ownership guidelines and holding requirements among Fortune 250 companies for fiscal years 2005 and 2006.

This report, covering numerous aspects of the design of share retention policies is an invaluable tool for compensation professionals seeking to adopt or amend ownership guidelines and holding requirements for companies of all sizes.