Knowledge Center
Reports
2013 Consultant League Tables
January 7, 2014
Pay policies continue to receive attention due to the combination of required shareholder votes on executive
compensation and increased public scrutiny. Decisions regarding executive compensation are now a central focus
since shareholders now have a vote on the topic. As a result, the relationship between companies and their pay
consultants has also drawn attention. It is important for companies to exercise caution not only in designing
their pay structures, but also in deciding who will advise them in compensation processes.
During the past several years, the mergers of large consulting organizations and the creation of new boutique firms
have continued to increase the competition for compensation-consulting dollars. The 2014 proxy season brings new
opportunities for consulting firms to increase their competitive market share or lose ground to their competitors.
Companies are looking for consultants that can provide expert overall pay-for-performance advice, but they also
consider how a firm’s unique characteristics match the company’s vision and objectives.
Equilar looked at executive compensation consulting engagements to determine the market share across a variety of
indices and industry sectors.
The 2013 Consultant League Table Report provides insight on consultants in a variety of categories, recognizing
firms for their particular areas of strength. Many of the large consulting firms consistently top the rankings for market
share, but categorical breakdowns reveal some of the smaller firms’ unique market niches. Review the various league tables
and find where your consultant ranks among its peers.
Methodology
The Equilar 2013 Consultant League Table Report provides rankings for the top national executive
compensation-consulting firms. The report examines public companies and measures the success of the consulting firms
across multiple metrics. Most of the league tables, except for the indices, look at all board engagements within the
Russell 3000 Index®. Market share is calculated by dividing the number of engagements a consulting firm has by the
total number of engagements in that particular space.
For each company analyzed, the most recent consulting firm disclosed in the proxy was taken. Companies that did
not disclose a consultant were excluded from the analysis. All data included in this report is derived from annual
reports and proxy statements filed with the U.S. Securities and Exchange Commission (SEC). The study looked at
filings for fiscal years ending between March 1, 2012 and February 28, 2013.
Indices
Equilar calculated the market share of each consultant for board engagements in some of the most popular indices.
The S&P 1500 is a composite of the large-cap, mid-cap, and small-cap.
Sectors
Consultants will often hold a large number of clients in one particular sector, as their expertise can provide valuable
insight into ideal executive compensation policies and structures for a specific type of company. Equilar looked at board
engagements among the Russell 3000® and determined which consultants had the biggest market shares in the various sectors.