Thirty-seven companies in the Frederic W. Cook "top 250" used a supplemental pay disclosure in 2013, up from 15 in 2012, according to a new survey from the consulting firm. The report, "Trends in Realized/Realizable Pay Disclosure," builds on Cook's annual survey of the top 250 companies ranked by market capitalization and analyzes the trends among companies disclosing realized or realizable pay in 2013. Key findings from the report include:
- Of the 37 companies that provided supplemental pay disclosures, approximately half (51%) used a realizable pay disclosure and just under half (43%) used realized pay, and two companies disclosed both; these results are in line with the Center's own findings from its January 2014 Changes in Compensation Practice survey.
- Disclosure "tended to be limited to the CEO" as opposed to all NEOs; this mirrors the approach taken by the Center along with the Conference Board Working Group in its conceptual framework for supplemental pay disclosures.
- Nearly all companies used intrinsic value for stock and option awards, as opposed to the Black-Scholes value.
- The majority of companies (65%) exclude all "indirect compensation elements" such as changes in pension value and other benefits and perquisites from supplemental pay for performance disclosures.
- Only 22% of companies compared realized/realizable pay to peers via a relative pay for performance comparison; many more (over three quarters) compared realized/realizable pay to their company's own performance or to target or Summary Compensation Table pay
- This may reflect concern on the part of companies and their investors that supplemental pay disclosures are not yet standardized enough to warrant relative comparisons to peers