ExCo Insights 2016
This year’s study reveals the following key insights. Firstly, the compensation of chairmen, other board members, CEOs and other executives in SMIM companies has been catching up with SMI companies over the last 9 years and growing faster than compensation at small-cap companies. Secondly, equity-based pay is gaining in importance, especially in large and medium-sized companies. Thirdly, three distinct sources of managerial incentives to create value play a potentially powerful role: a direct pay-performance sensitivity, an executive turnover-performance sensitivity and share ownership, that is, a wealth-performance sensitivity.