What's in store for 2009 in executive compensation?

To get a sense of likely 2009 trends in executive compensation, Executive Compensation consultants Towers Perrin examined the Compensation Discussion and Analysis disclosures filed by the compensation committees of 135 Fortune 500 companies. They report:

·         44% are freezing executive salaries.

·         10% are reducing executive salaries, with the most common approach a 10% reduction below 2008 levels.

·         16% saw executives forgo — or compensation committees reduce — payouts of earned incentive awards in 2008.

·         14% announced that 2009 annual or Long Term Incentive awards will be reduced or eliminated.

·         7% are curbing pay for directors.

For more information see: 2009 Proxy Statements Highlight the New Realities in Executive Compensation