OVERVIEW

Most executive pay levels analysis focuses on target equity grant values—essentially the accounting value at grant—rather than value realized when equity is earned. Assessing the trends and data underlying take-home equity value can offer boards a fresh perspective on their pay-for-performance alignment and pay program liquidity versus what is communicated to participants in target grant value.

Realized equity outcomes can be found in the Option Exercises and Stock Vested Tables in the CD&A, which reflect the value of an executive’s equity the moment it is off the table or earned. This report contains analysis on “In-Role S&P 500 CEOs” who have served for at least three years (so there is enough time for equity vesting to build up), and “Take-Home” equity compensation, including full-value shares at vest and options at exercise. Importantly, this analysis is differentiated from a “realizable” equity look, which would include the trending value of unvested equity awards.

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