Equilar and Center On Executive Compensation Launch Incentive Plan Analytics Calculator
The new Incentive Plan Analytics Calculator (IPAC), developed by Equilar and the Center On Executive Compensation, helps board compensation committees and executive management better align pay with shareholder value and company performance.
Redwood City, CA, June 12, 2017 --(PR.com)-- Equilar and The Center On Executive Compensation are proud to announce the launch of the Incentive Plan Analytics Calculator (IPACSM). 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: Determine the statistical relationship of specific financial metrics to Total Shareholder Return for a specified peer group over varying time horizons; evaluate financial measures for a specific issuer, peer group or industry sector; and customize timeframes and choose from over 150 financial metrics.
Incentive Plan Design allows IPAC users to: Compare the prevalence of metrics and long-term incentive plan effectiveness by category in their plans to that of a selected peer group; analyze performance of average or median TSR among their peer groups by selecting one metric category over another for long-term incentive plans; and align long-term incentive plans to company performance and strategy.
With IPAC, companies may also address specific pain points in incentive plan design. Common use cases include the following: Conduct analysis for companies doing business in multiple industries; assess metrics used by proxy advisors; compare metric prevalence and performance among peer companies; and address perceived pay for performance disconnects.
For more information, please visit http://www.equilar.com/IPAC.html
About Equilar
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
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: Determine the statistical relationship of specific financial metrics to Total Shareholder Return for a specified peer group over varying time horizons; evaluate financial measures for a specific issuer, peer group or industry sector; and customize timeframes and choose from over 150 financial metrics.
Incentive Plan Design allows IPAC users to: Compare the prevalence of metrics and long-term incentive plan effectiveness by category in their plans to that of a selected peer group; analyze performance of average or median TSR among their peer groups by selecting one metric category over another for long-term incentive plans; and align long-term incentive plans to company performance and strategy.
With IPAC, companies may also address specific pain points in incentive plan design. Common use cases include the following: Conduct analysis for companies doing business in multiple industries; assess metrics used by proxy advisors; compare metric prevalence and performance among peer companies; and address perceived pay for performance disconnects.
For more information, please visit http://www.equilar.com/IPAC.html
About Equilar
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
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Equilar
Dan Marcec
706-461-8333
www.equilar.com
Dan Marcec
706-461-8333
www.equilar.com
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