SOURCE: Equilar


December 04, 2012 10:00 ET

Equilar Compensation and Governance Outlook Report Highlights Key Trends and Issues to Follow in 2013

Board of Director Diversity, Peer Selection Methods, and Small-Cap Say on Pay Among the Changes on the Horizon

REDWOOD CITY, CA--(Marketwire - Dec 4, 2012) - Equilar, the leading provider of executive compensation and corporate governance data, published its annual Compensation and Governance Outlook Report, which identifies and analyzes the emerging trends that will fuel discussion in the areas of executive and director pay, equity usage, and corporate governance in 2013. Developed using data from public company filings, the report offers key examples of how companies addressed these issues in the past year.

"The world of compensation and governance is as dynamic as ever and it's critical to stay ahead of emerging trends," said Aaron Boyd, Equilar's Director of Research. "Again this year, we're pleased to release the Compensation and Governance Outlook Report to identify key issues and showcase how companies are addressing these complex situations."

The 48-page report details how increased public scrutiny has caused some companies to reconsider their board makeup and policies, including policies relating to the gender distribution of their boards of directors. According to the report, the percentage of S&P 1500 boards without female representation decreased from 29 percent in 2009 to 24 percent in 2011. Further, the percentage of companies with three or more female directors increased from 13 percent in 2010 to 15 percent in 2011.

The report also highlights the continued evolution of peer group selection in the area of compensation benchmarking. With increasing pressure from some companies, two major proxy advisory firms announced they will now incorporate a company's self-selected peers into the peer selection process, a major change in methodology. Specifically, Institutional Shareholder Services, Inc. (ISS) will exclude peers determined from the broader two-digit Global Industry Classification Standard (GICS), while Glass Lewis and Co. will incorporate Equilar Market Peers™ into their analyses.

Furthermore, the report notes that 2013 will mark the first year of Say on Pay for smaller companies. Since Say on Pay's implementation two years ago, firms with less than $75 million in publicly-traded shares were exempt from holding Say on Pay votes. Having observed the ways larger firms have responded to Say on Pay, these smaller firms may have an advantage in addressing Say on Pay.

For a complete review of the findings, request a copy of Equilar's 2013 Compensation and Governance Outlook Report by visiting

About Equilar

Equilar is the leading provider of executive compensation and corporate governance data to corporations, nonprofits, consulting firms, institutional investors, and the media. Using its extensive database, Equilar allows clients to accurately benchmark and track executive and board compensation, equity grants, award policies, and compensation practices. Equilar's C-Suite networking application also reveals business networking opportunities by identifying pathways to executives and board members at companies of interest. Equilar's research has been consistently cited by Bloomberg, The New York Times, The Wall Street Journal and other leading media outlets.

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