As companies review their executive compensation program designs and related corporate governance policies, current market practices and recent trends can provide competitive benchmarks that are helpful in understanding emerging standards, as well as facilitating productive boardroom discussions.
In order to inform these perspectives, Meridian’s first annual Senior Executive Incentive Design Practices Study covering the Retail, Consumer Durables, and Restaurant industries provides insights in the current incentive design structures used by companies today. This study presents market practices on senior executive incentive design separately for these three industry sectors for companies with revenue greater than $1 billion.
Results are reflective of 68 U.S. publicly traded companies with median revenues and market capitalization as of December 1, 2019 of $3.85B and $3.76B, respectively. All information was obtained from publicly disclosed documents. See Profile of Study Companies for more information on the study sample. Practices used by these organizations provide an indication of the emerging themes and trends likely to cascade down to smaller organizations in these industries.
The remainder of our study provides a summary of incentive practices reported in 2019. Future studies will cover trends and changes in practices year-over-year. We look forward to continuing to monitor these evolving practices.
For the full report, download the PDF.
Our Retail Industry Team
Meridian is dedicated to serving the retail industry. We have team members across our offices who “live and breathe” the issues facing the retail industry, and we have built our reputation through long-term relationships and proactive, high-quality advice. We understand the unique diversity of retail organizations, transformation into digital and ecommerce channels, and how to align each client’s unique strategy, culture and philosophies into customized pay programs that best meet their individual needs. Our work spans retail and related companies of all sizes, including consumer durables and restaurants.