May 18, 2023 Executive Compensation Shareholder Voting, SOP, and Proxy Results Reports

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Volume 1 | Published May 18, 2023
Shareholder Voting, SOP, and Proxy Results

2023 Pay Versus Performance Report S&P 500 and Russell 3000 company performance disclosure tracking

Volume 1 | Published May 18, 2023

CAP to SCT ratios remain positively correlated with TSR over the reported period

We have tracked pay versus performance disclosures for 625 Russell 3000 companies (269 within the S&P 500) thus far in 2023. The ratio of compensation actually paid (CAP) to summary compensation table pay (SCT) has shown a positive correlation with TSR. The 2022 median CAP to SCT ratio is 0.9x for the PEO and NEO average, and median 1-Year TSR is -4%. The Energy sector has the highest median 2022 CAP to SCT ratio at 1.8x. The Consumer Discretionary and Communication Services sectors represent the lowest at 0.5x.

A study of the outliers within the 2022 reporting period (defined as two standard deviations from the mean) shows that companies with negative TSR make up 56% of the outlier sample, and the Energy sector has the most outliers (21% of the outlier sample).

In 2021, the sample reported a higher average TSR and prevalence of companies with a CAP to TSR ratio above 1.0x. Notably, the R-squared between the two was the lowest of the three reported years.

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Contributors

Todd Sirras

Todd Sirras

Managing Director

Todd Sirras joined SBCG in 2002 and was named Managing Director in 2005. Prior to SBCG he was a Senior VP in Bank of America’s Asset  Management Group and a trader in listed equity options for O’Connor & Associates. He is a graduate of NYU Stern School of Business, the University of Virginia, and Phillips Exeter Academy.

Industry Experience

  • All Industries
  • Financial Services
  • Fintech

Featured In

  • Equilar C-Suite
  • Corporate Board Member
  • Bank Director
  • NACD/Directorship

Authored Insights

Austin Vanbastelaer

Austin Vanbastelaer

Principal

Austin is a founding member of Semler Brossy’s New York Office and is now located in North Carolina. He advises clients on strategic compensation issues, including during periods of transformative change. As a result, Austin’s client base covers a variety of industries–including fintech, biotech, and retail–and company performance contexts.

Of Interest

Corporate Governance

Industry Experience

  • Companies Undergoing Transformation
  • Retail
  • Biotech
  • Fintech

Featured In

  • WorldAtWork
  • Harvard Law School Forum on Corporate Governance
  • Equilar

Authored Insights

Justin Beck

Justin Beck

Consultant

Justin Beck has more than three years of executive compensation experience working with publicly traded and privately held firms. Justin has helped clients across a broad range of issues, including equity and incentive plan strategy, pay benchmarking, equity dilution management, and Say on Pay support.

Of Interest

Contributes to Say on Pay and Proxy Results report

Industry Experience

  • Retail
  • Financial Services
  • Insurance

Authored Insights

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