Total Compensation Background

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Total Compensation Background

The Survey & Proxy Analyses tab has traditionally provided estimates for individual non-cash elements of top executive pay.  Not every executive, however, is paid in all of the categories listed on Survey & Proxy Analyses.  The new Total Compensation tab measures total cash compensation, long-term incentives, total direct compensation, and total compensation directly.  The Total Compensation tab provides data for the typical mix of pay based on the current job title, organization size (e.g., revenue), and industry selection.  The Total Compensation tab also provides charts describing the likelihood of certain pay components in a given executive’s pay package.

 

Note: The Total Compensation tab is only available for areas in the United States.  Also, Total Compensation pie charts and bar charts are not available for nonprofit industries.

 

To Select a Position Title

Click the Browse button next to Position to bring up the Search Jobs screen used to select a position for analysis. The Total Compensation tab now includes data for all executive and director positions.

 

Adjustments to Compensation Analyses

The Executive Compensation Assessor produces two projections for each job: (1) one that is unadjusted (a national value), and (2) the fully adjusted estimate varied by industry, size, geographic area, and time.  Because of this, the Executive Compensation Assessor contains the Salary Adjustments dialog of queries regarding the nature of the organization in which the subject positions exist.  To assist a quick review, it displays the last inputted data upon startup (initially with the National Data Set).  Enter general information concerning the subject organization in this dialog box including the organization name (if it is required on any printouts).

 

Other adjustments may include:

 

Location

Browse to find a pre-defined area (city, state or province-wide average or country average) in the Executive Compensation Assessor.  See Select Area.

 

Industry

For industry-specific positions, the selection of an industry code will also alter the resulting estimates of the Executive Compensation Assessor.  The application automatically displays an eSIC industry description based on the code selected.  To determine the appropriate eSIC number, use the Browse function.  This will take you to a series of dialog boxes where you will be asked to select from the lists of available industry segments.  See Browse Industries.

 

Revenue

This field defaults to Revenue.  However, Assets, Fiscal Year Budget (FYB), or # or Employees can be used depending on the eSIC code. The industry selection, or eSIC code, will often affect the Organization Size choices available.  For example, some Finance industries, such as Depository Institutions (eSIC 6000), will be reported by Asset size.

 

Planning Date

The Planning Date is initially set to the computer's system date, or "today's" date.  If this date does not equal the "Database Date," a non-zero Annualized Salary Trend will display. (Only differences greater than or equal to one month have an effect.)  All salaries will be adjusted by this percentage to reflect the increase or decrease of salaries due to time.  This "Prorated" percentage is compounded monthly. The source of the default annualized salary trend value is the latest quarter’s ERI Salary Increase Report.  See Salary Planning Date.

 

Note: When any of the top six executive titles is chosen, the default Annualized Salary Trend is not used to trend the data forward or backward; the application uses actual public data to trend it.  In this case, the Annualized Salary Trend in Adjustments to Compensation Analyses will display "data driven," and the Adjustments button will not appear to the right of the Salary Planning Date. See FAQ #7 for information on setting the salary planning date for the top six executives.

 

Also note:  The Executive Compensation Assessor reports the most recently available data.  When you set the Planning Date back in time, the application trends the most recent data to the selected date.  It does not pull data from a historical database.

 

To Change the Percentiles or Mean/Median

See Customize Percentiles

 

To View Definitions of Terms

Click next to a term

 

To Export

See Export to PDF