Pay for Performance Analytics

Pay For Performance Reporting SolutionCompanies are under greater pressure to link executive pay to corporate performance. For most organizations, the true picture of pay-for-performance goes beyond simply looking at relative Total Shareholder Return (rTSR). Unfortunately, many compensation proxy data sources limit their offering to a narrow set of metrics.

Main Data Group’s (MDG) Pay-for-Performance module is a unique and highly customizable tool for measuring a company’s pay-for-performance relationship to its peers along 14 different incentive metrics. With measurement periods of one, two, or three years, compensation professionals can model the relationship on a consistent basis across a company’s peers. Unlike other sources, the dataset can be even further tailored, as “compensation” can be defined across 8 different pay components, each of which may have significant influence on the pay-for-performance analysis outcomes.

Q: What performance metrics are included?

  • Total Shareholder Return
  • EPS (Basic)
  • EPS (Diluted)
  • Total Revenue
  • EBITDA
  • Operating Income
  • Net Income
  • Operating Cash Flow
  • Total Assets
  • Invested Capital
  • Tangible Book Value
  • Return on Assets
  • Return on Invested Capital
  • Return on Book Equity

Q: Which components of compensation can be analyzed for an individual company or in a peer comparison?

  • Salary
  • Annual Bonus
  • Long-Term Cash Incentive
  • Time-Based Stock Awards
  • Time-Based Option Awards
  • Performance-Based Stock/Option Awards
  • Retirement
  • All Other Compensation

Q: How is the data presented?

As with all Main Data Group modules, the Pay-for-Performance database offers a broad set of on-screen data summary tables and charts, as well as a complete data set in Excel format which can be downloaded for more in-depth analysis.

The tabular data show each element of pay, as defined by the user, alongside the selected performance metric. Company-specific and summary statistics (at the minimum, decile, quartile, maximum and average) are included. A supplementary scatter chart visually shows the pay-for-performance relationship. From these analytics, it is easy to determine how a company has performed on the selected performance metric relative to its peers.

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