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Hay Group Has Highest Number of Executive Compensation Clients with Top Pay-for-Performance Grades, According to Top Shareholder Advisory Group

85 Percent of Clients Score Top Grades, More Than Any Other Top Consultancy

PHILADELPHIA--(BUSINESS WIRE)-- Hay Group, a global management consultancy, has the highest prevalence of Pay-for-Performance alignment of the top executive compensation consulting firms, according to a new analysis by Glass Lewis and Company, a leading, independent, governance analysis and proxy voting firm. Using Glass Lewis’s proprietary model, 85% of Hay Group’s client companies received grades in the “A” through “C” range, higher than clients of any other consultancy.

The Glass Lewis Pay-for-Performance Model calculates a weighted-average executive compensation percentile and a weighted-average performance percentile. These two percentile rankings are compared to determine how closely the compensation tracks the relative performance of the company.

The companies with the largest “gap” are identified by Glass Lewis as companies that have done a poor job of linking compensation with performance, and depending on the magnitude of the gap, each company is assigned a school-letter grade: “A”, “B”, “F”, etc.

For this particular analysis, Glass Lewis analyzed say-on-pay proposals during the 2012 proxy season, and identified 1,432 companies (381 within the S&P 500) that chose to engage outside compensation consultants to advise their compensation committee.

“We’re pleased that so many of our clients have scored highly on pay-for-performance, as Glass Lewis’ opinions are very influential with shareholders,” said Irv Becker, National Practice Leader of the U.S. Executive Compensation Practice at Hay Group. “However, we recognize that the proxy advisors don’t always provide their guidance in context of a company’s situation. What we’re most focused on is helping our clients create executive pay programs that align with their strategic needs.”

For more information:

To arrange for an interview with Irv Becker or another member of Hay Group’s U.S. executive compensation team, contact Mitch Kent at: mitch_kent@haygroup.com or at 215-861-2315.

About Hay Group’s Executive Compensation Practice

Hay Group’s Executive Compensation Practice works with Compensation Committees and Management at premier organizations across the globe to create tailored solutions that help them meet their governance responsibilities. For more than 60 years, we have helped companies of all sizes and across all industries navigate their complex executive pay issues to achieve desired outcomes and manage exposure. We understand the evolution of compensation practices and help clients manage these changes and prepare for scrutiny. For more information, please contact a consultant in Hay Group’s Executive Compensation Practice at www.haygroup.com.

About Hay Group

Hay Group is a global consulting firm that works with leaders to transform strategy into reality. We develop talent, organize people to be more effective, and motivate them to perform at their best. With 85 offices in 48 countries, we work with over 7,000 clients across the world. Our clients are from the private, public, and not-for-profit sectors, across every major industry and represent diverse business challenges. Our focus is on making change happen and helping people and organizations realize their potential.

Hay Group
Mitch Kent, 215-861-2315
mitch_kent@haygroup.com

Source: Hay Group