Global Governance Advisors (GGA) developed an interactive pay-for-performance analysis tool that measures 2010, 2011, 2012, 2-year average (2011-2012) and 3-year average (2010-2012) CEO compensation against company performance relative to other Top 100 companies in the S&P/TSX Composite Index (“Top 100”) as of Dec. 31, 2012.
The tool allows users to look at pay in five different combinations using: salary, short-term incentives and long-term incentives and measures it against one or more of seven common performance metrics.
The analysis does not illustrate if a CEO was overpaid or underpaid, rather it evaluates whether compensation is aligned to performance relative to CEOs of other companies in the index. It is important to note that each company would normally use a unique peer group specific to its industry when designing compensation packages, rather than using the Top 100.
