Annual Report Previews 11 Critical Governance Issues Facing Companies in the Upcoming Year
REDWOOD CITY, CA (December 09, 2013)– Equilar, the leader in executive compensation benchmarking and governance research, today announced the release of its 2014 Compensation and Governance Outlook Report. The comprehensive 20-page report explores 11 emerging trends in the fields of executive and director pay and corporate governance while providing disclosure examples to illustrate unique approaches.
“Each year, we highlight critical areas that will affect those dealing with compensation and governance issues in the upcoming year,” said Aaron Boyd, Equilar’s Director of Governance Research. “Topics featured prominently in this year’s report include supplemental total pay calculations, board diversity, Say on Pay responses, and pay for performance disclosures. Developments in these key areas will continue to shape the governance landscape well into 2014.”
One of the more notable topics covered by the report is the perennial issue of gender diversity in corporate boardrooms. Although one in five S&P 1500 boards has no female representation, the Equilar report highlights that female directors are closing the gender gap. In 2012, 22.0% of new directors were female compared to 18.2% in 2011. At year end, 79.2% of S&P 1500 boards had at least one female member, an increase over the 74.4% in 2011 and 71.8% in 2010.
The report also explores how companies are approaching the recently proposed CEO pay ratio rule. The new SEC proposal requires companies to disclose the ratio between CEO compensation and the median annual total compensation of all other employees.
Headquartered in Redwood City, Calif., Equilar is the leading provider of executive compensation data and governance tools for corporations, nonprofits, consulting firms, institutional investors, and the media. As the trusted data and executive solutions provider to 70% of the Fortune 500, Equilar helps companies accurately benchmark and track executive and board compensation, pay for performance results, and compensation practices. In addition, Equilar offers a leading business and event networking solution focused on serving executives and board members. Equilar’s research is cited regularly by Bloomberg, The New York Times, The Wall Street Journal, and other leading media outlets.