2016-2017 NACD Board Benchmarks: Executive Compensation Data

In brief: This document contains executive-compensation data for Russell 3000 companies in 2016, provided by Equilar Inc. and segmented by industry and market capitalization.

This resource can help your board to

• Analyze executive compensation practices among organizations of similar size/industry.

• Determine how various compensation components are weighted in the compensation plans of peer companies.

Most relevant audiences:  compensation committee members, nominating and governance committee members

The focus on the board’s compensation committee has never been sharper. The components of compensation plans and the link between compensation and company performance are under intense scrutiny from shareholders, employees, policymakers, the media, and other stakeholders. The Report of the NACD Blue Ribbon Commission on the Compensation Committee revisits NACD’s 2003 Report of the NACD Blue Ribbon Commission on Executive Compensation to highlight the new environment in which compensation committees—and, more broadly, boards—are now operating. It recommends that the compensation committee and board work together to establish an executive compensation philosophy that supports the company in creating long-term, sustainable value.

The report includes ten specific recommendations for compensation committees to consider when evaluating their compensation philosophies. It also provides practical tools, such as sample compensation committee charters, a compensation committee assessment, and guidance on executive employment contracts.