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United States
Separate Equilar® Studies Find CEO Bonuses Down and 10b5-1 Stock Trading Plan Use Up

2 April 2008
Source: Equilar

For Release: March 28, 2008Redwood Shores, Calif. – Equilar, the market leader for executive compensationbenchmarking solutions, today published its latest issue of Executive Compensation Trends. This month’s newsletter includes studies on CEO bonus awards at billion-dollar companies and stock trading plans at Fortune 500 firms. Key findings include:CEO Bonus Awards
  • In a study of 178 companies with annual revenues of more than $1.0 billion, the median value of CEO bonuses tied to annual performance plans covering 2007 fell by 18.6 percent. The prevalence of such payouts fell from 77.5 percent in 2006 to 70.4 percent in 2007.

  • However, overall CEO bonus compensation in fiscal 2007 grew by 1.4 percent over 2006. Overall bonuses include discretionary awards and cash payouts from annual and multi-year performance plans.

  • While the prevalence of CEO discretionary bonuses increased slightly from 24.2 percent in 2006 to 26.8 percent in 2007, the median value of discretionary awards grew by 27.6.

  • On an aggregate basis, total CEO bonus compensation for companies included in the study fell by 4.7 percent. Annual performance-based payouts led the decline and accounted for 62.6 percent of aggregate bonus compensation in 2007.
Executive 10b5-1 Stock Trading Plans
  • From 2006 to 2007, the total number of Section 16 officers using 10b5-1 plans at Fortune 500 companies increased by 5.5 percent. This change actually reflects a slowdown in adoption rates. From 2005 to 2006, the total number of executives using 10b5-1 plans had increased by 31.2 percent.

  • In 2007, 31.8 percent of Fortune 500 companies had at least one Section 16 officer using a 10b5-1 stock trading plan, up from 28.7 percent of companies the year before and 25.6 percent of companies in 2005.

To learn more, visit Equilar, Inc.
Equilar, a NASDAQ strategic alliance partner, is the market leader for benchmarking executive and director compensation. Equilar enables corporations, consulting firms, law firms, investors, individual executives, and members of the media to accurately compare pay packages across public companies using SEC data. Equilar’s products include an award-winning suite of online tools for analyzing compensation and corporate governance trends and independent custom research services. Equilar's research is frequently featured in Bloomberg, BusinessWeek, CNBC, The Financial Times, Fortune, The New York Times, Reuters, The Wall Street Journal and other leading media publications. Equilar is based in Redwood Shores, CA and was recently recognized by Inc. magazine as one of the fastest growing businesses in America.

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