By most indications, the economy is showing signs of strengthening at the time of this research.
The Top 100 companies were segmented based on the highest above-target NEIP payout as disclosed in the Summary Compensation Table (SCT) for year-end 2012.
When analyzing the TSR for both one year and three years as of fiscal year end 2012, research showed that the Top 100 companies achieved slightly smaller TSR values over one year than the Other group of companies.
This analysis supports investors’ preferences and board members’ need to demonstrate short-term results to be directly linked to long-term sustainability of business performance.
For the Top 100 companies in this study, we analyzed how many measures were used in the NEIPs and which measures were the most prevalent.
The Top 100 Mid Cap companies with the highest NEIP payouts also achieved higher three year TSR values than the Other 252 companies included in the study.
