The annual ISS Benchmark Policy Survey has a significant portion devoted to executive compensation topics. In the several questions on Pay for Performance, one focuses on the issue of pay equity.
Is there a threshold at which you consider that the magnitude of a CEO’s compensation should warrant concern even if the company’s absolute and relative performance have been positive, for example outperforming the peer group?
If the survey taker answers yes, the survey asks about their view on three possible “tools for determining excessive pay magnitude“.
- Comparison to median CEO pay at peer companies
- Comparison of CEO compensation to pay of other named executives
- Excessive proportion of corporate earnings or revenue
In prior years, the ISS survey questions have often portended changes in policies. Survey results are expected in late September. The results could be interesting this year.
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