REDWOOD CITY, CA AND WASHINGTON, D.C. (June 8, 2017) —Equilar and The Center On Executive Compensation are proud to announce the launch of the Incentive Plan Analytics Calculator (IPAC℠). IPAC allows companies to better assess performance metrics used in their incentive plans compared to the metrics used by their peers.
Building effective incentive plans can be difficult and time consuming. Board compensation committees and human resources leaders are tasked to create balance with strategic incentive plans that motivate executive performance while driving shareholder value creation. In an environment of increased attention to executive compensation from investors, proxy advisors and the media, it is even more important to have access to the highest quality data and tools.
“Investor scrutiny around incentive plans has reached a tipping point, and shareholders are demanding that companies clearly disclose and communicate their pay for performance strategies,” said David Chun, Founder and CEO of Equilar. “IPAC addresses the imminent need for all issuers to evaluate their executive incentive plan design.”
“IPAC gives company boards and management the ability to be more informed about the relationship between their performance metrics and shareholder value creation over time,” said Shelly Carlin, Center On Executive Compensation Executive Vice President, who developed the idea behind IPAC. “This has the potential to improve the incentive design process, and lead to more effective proxy disclosures.”
IPAC has two main solutions to help companies identify and design executive incentive plans—Financial Metric Correlation and Incentive Plan Design.
Financial Metric Correlation allows IPAC users to:
Incentive Plan Design allows IPAC users to:
With IPAC, companies may also address specific pain points in incentive plan design. Common use cases include the following:
For more information, please visit http://www.equilar.com/IPAC.html.
Equilar is the leading provider of board intelligence solutions. Companies of all sizes rely on Equilar for their most important boardroom decisions, including 70% of the Fortune 500 and institutional investors representing over $13 trillion in assets. Equilar offers data-driven solutions for board recruiting, executive compensation and shareholder engagement that bring together business leaders, institutional investors and advisors to drive exceptional results while ensuring sound corporate governance. The Equilar suite of solutions includes industry-leading board education symposiums, comprehensive custom research services and award-winning thought leadership. Founded in 2000, Equilar is cited regularly by Associated Press, Bloomberg, CNBC, The New York Times, The Wall Street Journal and other leading media outlets. Learn more at www.equilar.com
About The Center On Executive Compensation
The Center On Executive Compensation is dedicated to developing and promoting principled pay and governance practices and advocating compensation policies that serve the best interests of shareholders and other corporate stakeholders. Headquartered in Washington, DC, the Center was created at the direction of the Board of Directors of HR Policy Association, which represents the senior human resource officers of more than 380 of the largest corporations in the United States. For further information on the Center On Executive Compensation, please visit www.execcomp.org