EXECUTIVE COMPENSATION LINKED MORE TO PERFORMANCE
Large United States corporations are taking stronger measures to link company performance and executive pay, according to a survey of 1,400 companies by William M. Mercer Companies, a consulting firm.Skip to next paragraph
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Among the 144 largest firms (sales exceeding $5 billion) surveyed, 28 percent say they have implemented more rigorous performance standards for executives. More than 40 percent of respondents have changed or are considering changing their criteria for compensating executives, such as using gauges of total shareholder return rather than traditional earnings-per-share measures.