Pearl Meyer's annual "Looking Ahead to Executive Pay Practices" survey of 199 companies (64% public/25% private/11% NFP) conducted in August and September 2019 revealed these and other key highlights:
Compensation committee responsibilities - Compensation committee oversight responsibilities are continuing to expand into D&I and other areas traditionally maintained largely at the management level, as shown here:
Gender pay equity/gaps - Nearly 60% of respondents have conducted an internal assessment of gender pay equity and 35% have also reviewed gender pay gaps. Information shared with the board on gender pay and diversity varies, as depicted here:
ESG incentive pay metrics - Notably, 15% of public company respondents tie or plan to tie a portion of their CEO’s annual incentive pay to D&I metrics. However, just 14% say they use or plan to include ESG metrics (typically representing 5% - 10% of the total award opportunity) in their senior executive incentive plans; of those, inclusion of environmental metrics far outweighs social and governance metrics (67% environmental compared to 33% social and 25% governance).
The full report, available for purchase, includes all responses in dozens of detailed data tables organized by respondent role and company ownership type, industry, and revenue size.
Access additional information & resources on our Executive/Employee Pay and Gender & Other Pay Gap/Parity pages. This post first appeared in the weekly Society Alert!