More Companies Reveal Targets

The number of Fortune 100 that disclosed specific performance targets for their executives is on the upswing, a response to both the lackluster economy and shareholder demands.

 

A study released last week by Equilar, the executive compensation research firm in Redwood Shores, Calif., found that among the companies with annual bonus plans, 68 percent disclosed specific performance targets that executives were required to meet in order to receive their payouts.

 

In 2007, Equilar examined what internal company goals were set forth for executives.

 

Both long-term and short-term plans were compared with company targets. The study showed that 81 percent of short-term award plans were given on the basis of achieving internal company targets. Sixty percent of long-term performance awards use relative measures to determine payouts.

 

Equilar compiled two years worth of information regarding how executive pay is calculated and included such companies as: Bristol Myers Squibb, Intel Corp., Amgen, Marvel Entertainment, Google, Corning, Eli Lilly & Co., American Electric Power, Allstate, Honeywell International, Conocophillips, Kellogg, Deere & Co., Dupont, Verizon Communications, Metlife, Citigroup, PepsiCo, Fifth Third Bancorp and Dreamworks.

 

The SEC in recent years has sought fuller disclosure for specific performance targets for executives. The report breaks out the Fortune 100 companies and how they paid top executives.