Analyze your position against peers using 11 critical dimensions of executive compensation and governance.
Easy-to-access reports and online views of peer group data comparisons organize MDG’s extraordinary breadth and depth of crucial compensation information around the issues and topics that make sense for compensation professionals.
MDG’s Peer Group Manager tool, the cornerstone of our online tools for proxy analysis, is designed to provide maximum flexibility in the construction and analysis of an unlimited number of peer group combinations.
Below is a summary of reports and online peer group data that is available within each of the MDG modules. Unlike other offerings that charge per module, MDG subscribers have unlimited access to all data modules!
Executive Pay Data Module
- Executive Pay Data: A cornerstone of any executive compensation analysis, this report provides users with up to three years of historical executive compensation data for all named executive officers. It displays dollar values of each pay element and total compensation, as well as covering pay mix, outstanding equity awards, beneficial ownership, and related topics. From measuring overall pay to analyzing specific pay components, this report is essential to establishing competitive norms among peers.
- CIC / Severance: Essential for all companies – whether they are acquirors, takeover targets, or simply looking to ensure that their termination benefits are competitive with their peers – this report includes detail for each Named Executive Officer (NEO) and for each termination scenario (CIC or severance without cause in the absence of a CIC), as well as side-by-side comparisons of the CEO’s benefits to those of other NEOs. Tracking down this information from proxies, 10-K, 8-K and plan documents is time-intensive, so using MDG’s CIC / Severance report saves an immense amount of research.
- Pay-for-Performance: The linkage between pay and performance is scrutinized by governance watchdogs and shareholders alike, and there are few areas of executive compensation where competitive analysis is more crucial. MDG’s Pay for Performance report is highly customizable, measuring a company’s pay-for-performance relationship to its peers along 14 different incentive metrics and three different time horizons. It can be used to assess performance relative to peers or to help identify relevant metrics.
- Corporate Financials / TSR: Corporate financials and TSR constitute important metrics for identifying peers and setting appropriate incentive targets in executive compensation. This report includes information about a company’s location, size, industry and financial performance and can help companies understand the financial dynamics of their peers in great depth.
- Equity Dilution: Companies don’t have inexhaustible reserves of shares from which to grant equity awards, and shareholders’ tolerance for economic dilution from equity awards varies according to a company’s industry, stage in the corporate life cycle, and other considerations. This report, which includes comprehensive three-year burn rate, dilution, overhang and shares available data, helps companies compare their share utilization to peers and helps ensure that their share usage is within competitive distance.
- CEO Pay Ratio: Disclosure of this ratio was mandated for many companies by the Dodd-Frank Act. To provide context for the ratio, some companies include extensive narrative behind the raw ingredients of the ratio (CEO pay and pay of the “median employee”) with demographics, definitions, exceptions, methodologies, and even supplemental ratios. This report covers a wide breadth of topics taken from these narratives, in addition to year-over-year changes in the ratio and its components. In these early years of disclosure, companies should be particularly alert to how their peers disclose.
Plan-Based Awards Module
- Plan-Based Awards: The devil is always in the details, and MDG’s Plan-Based Awards report gives companies detailed insight into their peers’ incentive design, including prevalence of various award types, value of incentive packages at various incentive performance benchmarks, ratio of incentive-based pay to fixed salary, and other design issues. The report also includes each performance metric and related details (weightings, funding triggers and modifiers, at the corporate or division level, measured on relative or absolute terms).
- Form 4: A lot happens in the year between proxy filings, and companies need to stay on top of their peers’ compensation-related activities in the meanwhile. The Form 4 report tracks the most recent equity award grants delivered to a company’s officers and board members, helping to ensure that companies are not caught by surprise when peers make off-cycle awards or other inter-period compensation decisions.
CD&A Summary Module
- CD&A Summary: The CD&A is arguably the least “standardized” section of the proxy statement; its structure varies from one reporting company to another, so finding data can be a time-intensive challenge. MDG’s CD&A Policies report provides a consistent, highly detailed template for peer rank targets, percent-of-salary targets, incentive threshold and maximum percentages, guidelines for stock ownership and retention, claw-back policies, and compensation consultant information – important information for understanding a peer’s plans and practices that otherwise may be difficult to synthesize.
Retirement & Perquisites Module
- Retirement & Perquisites: As scrutiny of executive compensation continues to grow, more and more aspects of executive pay are thrust under the microscope, making it necessary for compensation professionals to understand what their peers are doing with respect to retirement arrangements and perquisites. The Retirement & Perqs report presents information on retirement plans and features, and perquisites offered.
Board Pay Module
- Board Pay Details: MDG’s Board Pay report helps users understand not only director pay, but the way a board operates. It includes comprehensive board cost data, information on board size and structure, as well as values for the various pay elements (e.g., retainers, meeting fees, initial and annual equity awards). It also includes cutting-edge information on board pay limits and forward-looking board pay.