The economy may not be booming yet, but many companies have emerged far enough from the recession to start raising executive compensation again.
A new survey of more than 250 midsize to large U.S. companies by professional services firm Towers Watson finds that reductions in executive compensation in 2008 and 2009 may be reversed this year.
Nearly half of the companies, 49 percent, said they plan to increase annual bonuses this year, while just 16 percent expect to offer less. When it comes to long-term incentives, 33 percent say they’ll raise them this year, while 14 percent will make cuts.
Companies are not simply throwing more money at executives, though. The survey finds that two-thirds of the employers are changing their annual incentive plans, with some adding new performance metrics, raising performance goals or giving compensation committees more discretion in determining what executives will receive. Just over half the companies are also adjusting their long-term performance plans.
Still, the companies have more work to do. The survey found that few of them are prepared to let shareholders vote on their compensation plans as required by new financial services reform legislation.
Click here for more on the survey.
