Market Pulse: Executive Compensation

14 June 2019

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Executive pay has become an increasingly contentious issue in the last few years. Compensation has reached record levels since the financial crisis, triggering a backlash from investors and the public alike. With shareholders having more say on this issue than ever before, companies have been forced to reevaluate and in some cases overhaul existing executive pay schemes in response to external pressure.

To find out how the executive compensation landscape is evolving, Toppan Merrill commissioned Mergermarket to survey corporate respondents in North American firms for their insights.

Key findings include:

• An overwhelming majority of respondents (84%) report increased investor pressure surrounding executive pay over the last three years.

• Over the past three years, respondents say shareholders have been most concerned with annual bonuses (28%), benefits (24%) and contingent payments (18%).

• Respondents remain split when it comes to Say on Pay voting’s true value: 44% believe the rules to be disruptive; 24% view them as beneficial; and 32% are neutral.