TOP FIVE

Top five compensation policy changes in 2002/2003:

23%

Altered long-term incen-tive plan (LTIP) structure

11%

Modified metrics for long-term/short-term incentives

9%

Introduced exec. stock ownership requirements

6%

Created holding period after exercising options

6%

Granted exec(s) special one-time retention award

View "Trends in Compen-sation Policies & Practices"

SOURCE: Equilar

An analysis of compensation committee reports has found that nearly 50 percent of S&P 100 companies disclosed one or more material changes in their compensation policies or practices last year.

The analysis was conducted by compensation-governance solutions firm Equilar, Inc., of San Mateo, Calif.

Among the top five policy changes (see chart at right) were alterations to long-term incentive plan (LTIP) structures.

According to Equilar, increased usage or adoption of restricted stock was the primary change made to LTIPs by companies, including firms like Altria, Exxon-Mobil and Halliburton.

Increased use of cash was also noted; according to Equilar, "Given the prolonged bear market of 2000 to 2002, it is not surprising that several companies ... also added or increased the cash component of their LTIPs."

Details are available from the box at right.