IWS Documented News INTERNATIONAL

IWS Documented News Service

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Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

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A Report by WorldatWork and Vivient Consulting

Private Company Incentive Pay Practices

January 2012

http://www.worldatwork.org/waw/adimLink?id=58146

[full-text, 33 pages]

What do short- and long-term incentive programs look like at U.S. private firms? How have competitive practices changed because of the difficult economic climate?

WorldatWork and Vivient Consulting first surveyed private companies to learn about their short- and long-term incentive practices in 2007. The survey was popular and filled a gap in competitive data for private companies relative to their public counterparts. For 2011, WorldatWork and Vivient updated this survey to assess how practices have changed over the past several years at private companies.

Table of Figures

GRAPH 1: PRIVATE COMPANY SHORT- AND LONG-TERM INCENTIVE PREVALENCE ........................... 3

GRAPH 2: PRIVATE COMPANIES WITH LTI PLANS BY CORPORATE STATUS ...................................... 3

GRAPH 3: STI PLAN PREVALENCE ................................................................................................ 4

GRAPH 4: PRIVATE COMPANY BONUS MEASURES ......................................................................... 5

GRAPH 5: LTI PLAN PREVALENCE ................................................................................................. 7

GRAPH 6: PRIVATE COMPANY OVERHANG ..................................................................................... 7

TABLE 1: PRIVATE COMPANY LTI VALUATION MECHANISMS ........................................................... 8

TABLE 2: PRIVATE COMPANY STOCK OPTION AND RESTRICTED STOCK LIQUIDITY MECHANISMS ...... 8

ADDENDUM 1: PRIVATE SECTOR - PRIVATELY HELD DETAILED FINDINGS SHORT-TERM INCENTIVES..10

ADDENDUM 2: PRIVATE SECTOR - PRIVATELY HELD DETAILED FINDINGS LONG-TERM INCENTIVES....16

ADDENDUM 3: PRIVATE SECTOR - PRIVATELY HELD DETAILED DEMOGRAPHICS……………………...24

ADDENDUM 4: PRIVATE SECTOR - PRIVATELY HELD SURVEY PARTICIPANTS………………………....31

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