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Exec comp trends Executive compensation

Pay versus performance disclosure: Most common company selected metric 

  • As part of the Pay Versus Performance disclosure requirements, each U.S. public company must disclose its Company Selected Metric (CSM) — a specific performance measure chosen by the company as a key indicator of financial performance. This metric is used to align executive compensation with the company’s strategic goals and performance outcomes.
  • The CSM selected can vary widely among organizations, reflecting each company’s unique business model, industry, and strategic objectives.

Understanding the core elements of executive compensation 

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  • EBITDA is the most common CSM used across all industry sectors, with it being the most popular CSM in four sectors (Communication Services, Energy, Industrials and Materials)
  • In four industry sectors, at least half of companies sampled used the same CSM (Communication Services, Materials, Real Estate, and Utilities)
  • Executive pay levels and pay programs are continuously under scrutiny by shareholders of publicly-traded companies.
  • Mercer has Executive Compensation experts that advise clients in the United States, Canada, and dozens of other markets globally. We help clients develop the right compensation structures for their executives using a market-informed, individually-tailored approach.
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Speak with your Mercer consultant or contact us to discuss your unique executive compensation needs.