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| The February 2008 issue of Executive Compensation Trends explores two topics which are fresh in media headlines. As numerous companies announce executives declining to take bonuses for fiscal year 2007, our first article presents early results from over 100 companies which filed proxies in the first few months of 2008. Not surprisingly, CEO bonuses are down from a year ago. The second article examines CEO death benefits at Fortune 100 companies. Death benefits, like severance packages, are increasingly scrutinized by shareholders and increasingly a focus of the media. |
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| Feature Articles |
| Early CEO Bonus Trends for Fiscal 2007 |
An analysis of over 100 companies filing proxies in early 2008 |
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An Equilar analysis of chief executive officer bonus trends reveals the following key findings: |
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A study of 108 companies with revenues over $1 billion and fiscal years ending on or after August 31, 2007, finds that the median CEO bonus declined by 4.5 percent from 2006 to 2007. For the same companies, CEO bonuses had increased by 27.1 percent from 2005 to 2006.
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Among the sample group, 38.0 percent of CEOs received a smaller bonus in 2007 than in the prior year. From 2005 to 2006, the prevalence of CEOs receiving a smaller bonus than the year before was 28.7 percent.
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Equilar clients can read the full CEO bonus trends story here.
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| Fortune 100 Death Benefits and Life Insurance |
An analysis of Fortune 100 companies |
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An Equilar analysis of death benefits and life insurance policies for executives at Fortune 100 companies reveals the following key findings: |
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In fiscal year 2006, 17.2 percent of Fortune 100 companies disclosed that their CEO is entitled to receive death benefits. Likewise, 16.1 percent of named executive officers (NEOs) are in-line to receive similar payments.
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For the same group, 39.8 percent of CEOs and 40.8 percent of NEOs are eligible to receive life insurance. |
Equilar clients can read the full death benefits story here.
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To learn more about the benefits of becoming an Equilar client, request a demo online or call (877) 441-6090.
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| Equilar in the News |
Equilar's research appeared in numerous articles in late January and February. To learn more, click on the selected links below. For a complete list of articles featuring Equilar research, visit the News & Publications section of our website.
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Visa Plans $17 Billion Public Offering
February 25, 2008
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"Since October 2006, Visa has reorganized its sprawling management structure, bringing together all of its global operations with the exception of those in Europe. It has also hired Joseph W. Saunders, the former head of Providian Financial Corporation, as its chairman and chief executive, giving him a pay package worth $11.1 million in cash for 2007. Upon completion of the I.P.O., he is expected to receive an additional $11.5 million in stock and options, according to Equilar, a compensation research firm."
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Stock-Ownership Requirements Increasing
February 20, 2008
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"The number of large companies with publicly disclosed stock-ownership policies for board members climbed 7 percent to 77.6 percent among Fortune 250 firms in 2006, according to a new report by Equilar, a compensation data and research company. The report also finds that the median stock-ownership target for directors neared $250,000 in 2006."
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Microsoft Said to Plan Proxy Fight for Yahoo
February 20, 2008
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"Yahoo's top executives will receive their base salaries for 24 months and be eligible for the maximum $15,000 amount in outplacement-benefits reimbursements. More than 4 in 5 Fortune 200 companies have similar - and sometimes more generous - enhanced severance agreements for top executives after a merger or acquisition, according to Equilar, an executive compensation research firm. But those types of agreements rarely extend to all employees, according to Equilar."
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More Companies Regulating Executive Stock Ownership
February 19, 2008
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"Equilar, Inc., based in Redwood Shores, California, said the percentage of Fortune 250 firms regulating executive stock ownership hit an all-time high in 2006 of 80.9%, up from 73.9% the year before. Meanwhile, the prevalence of Fortune 250 companies with publicly-disclosed director stock ownership policies climbed to 77.6%, up from 70.6% in 2005."
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Executive Pay Tops Investors' Priority List
February 12, 2008
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"Last year, peer group disclosure was 'all over the map,' according to David Chun, chief executive of compensation research firm Equilar. In 2007, most companies had about 20 companies in a peer group. What wasn't clear from many companies' disclosure in their Compensation Discussion & Analysis, Chun said, was how they chose the peer group companies they did. Companies also didn't discuss why companies that met their peer group criteria weren't included."
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Top Option Grants, Stock Awards in January
February 12, 2008
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"According to Equilar, several grants of 'premium-priced' options were awarded in January, an increasingly common compensation practice. Awards are considered premium-priced when the exercise price of the grant is higher than the stock price on the grant date."
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Comp Consultants Getting Slammed in CEO Pay Flap
Agenda Magazine
February 11, 2008
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"Formal policies mandating that the comp consulting firm be fully independent from management are now in place at Procter & Gamble, Microsoft, Sotheby's and Gaylord Entertainment. Countrywide Financial and Gaylord Entertainment have switched comp consultants to avoid potential conflicts. Still, only 1.5% of Fortune 1000 companies disclosed having separate comp consultants for the board and management team in 2006, according to a study by Equilar."
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Are You Overpaid? Your Board Thinks So.
February 5, 2008
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"One in three directors of U.S.-based public companies say that C.E.O. pay is 'too high in most cases.' This information comes in a survey conducted jointly by Heidrick & Struggles, the executive recruitment firm, and the Center for Effective Organizations at the University of Southern California's Marshall School of Business." (See graphic for Equilar data)
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If It's Hit, Strummed or Plucked, It'll Be Here
February 2, 2008
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"After a 40-year career at Target, Mr. Ulrich seems to have the wherewithal. He got $36.4 million in compensation in 2006; after his retirement, planned for February 2009, he will be eligible for pension and deferred compensation payments of $135 million, according to Target's April 2007 proxy as analyzed by Equilar, an executive compensation research firm in Redwood Shores, Calif. His shares in the company, held directly and indirectly, amount to about $40 million."
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Analysis Shows CEOs Opting for More Options-Based Shares
January 31, 2008
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"An Equilar analysis of fourth-quarter filings with the Securities and Exchange Commission found that the total number of shares awarded to Fortune 500 chief executives was approximately 30.7 million, an 18.2 percent increase over the fourth quarter of 2006. When compared to Q4 2006, the overall number of full-value shares granted to Fortune 500 chief executives in Q4 2007 fell by 10.2 percent."
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Google CEO, Co-Founders Made Long-Term Promise
January 30, 2008
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"Based on Google's closing price of $550.52 on Tuesday, Mr. Page held $16.05 billion worth of Google stock, while Mr. Brin was worth $15.76 billion. Mr. Schmidt, who was recruited from Novell Inc., had $5.22 billion in shares, according to executive compensation research firm Equilar."
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| Members of the press who are interested in obtaining Equilar research for their stories should feel free to contact Equilar at press@equilar.com. |
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| Citing Equilar Research |
To cite Equilar research in your story, blog, presentation, or newsletter:
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Please refer to Equilar as "Equilar, Inc., an executive compensation research firm" with a hyperlink to our homepage at http://www.equilar.com/.
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To cite an entire article, please refer to individual articles for further instructions.
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| EquilarInsight |
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Equilar is proud to
announce the release
of PracticesInsight,
a database of disclosure examples compiled from
over 5,000 proxies.
To learn more,
please call (877) 441-6090
or click the following link:
Request a Demo
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2007 Executive Stock Ownership Guidelines
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To learn more, please
click the following link: |
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2007 Director Stock Ownership Guidelines
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To learn more, please
click the following link: |
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To learn more, please
click the following link: |
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| New Blog Posting |
Insights on Executive Compensation Disclosure Trends
Equilar CEO David Chun shares interesting compensation trends and practices seen in the marketplace while offering independent and objective analysis. To read his recent entry about mergers and broad-based severance, please click the following link:
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| Careers at Equilar |
| Equilar is looking for strong candidates to fill key positions across all departments. To learn more about opportunities at Equilar, please visit our careers page by clicking on the link below: |
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