Wall Street Journal reports more executives than ever paid for performance in 2012
According to a recent Wall Street Journal study, more than half of CEO’s in 2012 were paid relative to their company’s financial and stock-market performance. In stark contrast, just 35% of companies compensated executives in 2009 with performance-based rewards, and the rise remains part of the continuing shift to align executive pay with company success.
Since the inception of Dodd-Frank in 2011, shareholders have voted on whether executive compensation is fair and commensurable, and although the votes remain non-binding, shareholders are focused more intently on tying raises closely to overall performance metrics. In short, more and more executives should expect to be paid in accordance with true company success, leaving fewer rewards at failing companies as more and more boards structure contracts around targets and goals.
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