Survey Results: Compensation Committees and Compensation Consultants
1. Does your compensation committee: (Total responses: n=62)
(select only one) |
| n=10 (16.13%) |
a. have a policy that it will not employ any compensation
consultants who perform services for management. |
| n=32 (51.61%) |
b. not have such a policy, but does not intend to employ any of
the same compensation consultants as management. |
| n=20 (32.26%) |
c. employ some (or all) of the same compensation consultants used
by management. |
2. In practice, how does your compensation committee go about hiring
an expert for making recommendations regarding CEO compensation?
(Total responses: n=61)
(select only one) |
| n=27 (44.26%) |
a. Management offers up a consultant to the compensation
committee that it finds acceptable, subject to committee approval. |
| n=31 (50.82%) |
b. Compensation committee left completely on its own to find and
hire whatever consultant it wants. |
| n=3 (4.92%) |
c. Compensation committee has not hired an expert for setting CEO
compensation. |
3. Assume the company already is using consultant A for general
compensation advisory purposes, will your compensation committee: (Total responses: n=61)
(select only one) |
| n=22 (36.07%) |
a. Use the same consultant to help set executive compensation. |
| n=23 (37.70%) |
b. Use a different consultant to help set executive compensation. |
| n=16 (26.23%) |
c. Too early to tell what the compensation committee will do
going forward. |
4. Regarding compensation committee charters, the committee has: (Total responses: n=61)
(select only one) |
| n=36 (59.02%) |
a. A charter that states that the compensation committee will be
the sole entity in the company to hire compensation consultants
specifically related to CEO compensation. |
| n=11 (18.03%) |
b. A charter that states that both the compensation committee and
management have the authority to hire compensation consultants
specifically related to CEO compensation. |
| n=14 (22.95%) |
c. A charter that does not address who hires compensation
consultants. |
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