The Fortune 50: Compensation Disclosure Trends
Much thanks to Marc Trevino and Joseph Hearn of Sullivan & Cromwell for this interesting survey of compensation disclosure trends by the Fortune 50 (it's really a survey of 30 companies from the Fortune 50; those are the companies that had filed as of the survey date). We have posted this survey on CompensationStandards.com under our "The SEC's New Rules" Practice Area. I plan to blog about various statistics from this survey in the near future.
Results of Quick Survey: CD&As
Well over 400 of you responded to our recent survey on the CD&As drafting process. Below is a summary of the results:
1. At my company, the first draft of the CD&A was drafted by:
- In-house lawyer - 37.9%
- In-house corporate secretary - 7.4%
- Human resources staffer - 28.2%
- Outside compensation consultant - 8.1%
- Lawyer in outside law firm - 12.7%
- Other - 5.8%
2. At my company, the following people spent the indicated number of hours drafting and/or reviewing the CD&A (note – this survey is just the CD&A, not the remainder of the compensation disclosures and tables; if more than one person in a category spent time on the CD&A, combine their time):
a. In-house lawyers and corporate secretary staff
- 0-5 hours - 8.9%
- 5-10 hours - 8.7%
- 10-20 hours - 13.2%
- 20-30 hours - 14.8%
- 30- 40 hours - 9.2%
- 40-80 hours - 17.1%
- More than 80 hours - 28.2%
b. Senior management (ie. CEO and/or COO)
- 0-5 hours - 50.5%
- 5-10 hours - 26.9%
- 10-20 hours - 13.4%
- 20-30 hours - 4.9%
- 30- 40 hours - 1.7%
- 40-80 hours - 1.2%
- More than 80 hours - 1.4%
c. Human resources staffers
- 0-5 hours - 26.3%
- 5-10 hours - 12.0%
- 10-20 hours - 10.8%
- 20-30 hours - 7.3%
- 30- 40 hours - 10.8%
- 40-80 hours - 10.1%
- More than 80 hours - 22.7%
d. Accounting staff, including CFO and controller
- 0-5 hours - 31.3%
- 5-10 hours - 23.1%
- 10-20 hours - 15.5%
- 20-30 hours - 10.8%
- 30- 40 hours - 7.1%
- 40-80 hours - 6.8%
- More than 80 hours - 5.4%
e. Compensation committee and other directors
- 0-5 hours - 38.0%
- 5-10 hours - 34.7%
- 10-20 hours - 18.5%
- 20-30 hours - 5.4%
- 30- 40 hours - 1.4%
- 40-80 hours - 1.2%
- More than 80 hours - 0.7%
f. Outside compensation consultants
- 0-5 hours - 50.2%
- 5-10 hours - 17.5%
- 10-20 hours - 16.0%
- 20-30 hours - 6.8%
- 30- 40 hours - 4.4%
- 40-80 hours - 3.6%
- More than 80 hours - 1.5%
g. Outside lawyers
- 0-5 hours - 27.8%
- 5-10 hours - 24.0%
- 10-20 hours - 18.3%
- 20-30 hours - 9.3%
- 30- 40 hours - 7.8%
- 40-80 hours - 4.3%
- More than 80 hours - 8.6%
Quick Survey: Board Evaluations
Please take a moment to participate in this Quick Survey on Board Evaluations.
Posted by broc at 06:44 AM