New exec pay disclosures facilitate assessment of pay-for-performance

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Here’s the intro from this press release:

Does the SEC’s new PVP disclosure improve shareholders’ ability to assess pay-for-performance alignment? An in-depth study by Pay Governance LLC, a premiere board-level executive compensation advisor that advises the boards of many prominent publicly traded companies, concludes that it does, and provides additional insights, as well.

Given the significant use of stock incentives at virtually all publicly traded companies, it was expected that the new PVP disclosure requirement would demonstrate some degree of pay-for-performance alignment. What was unknown was just how strong the alignment might be and if the new disclosure would truly assist shareholders in understanding the relationship of a company’s pay and performance.

“The new PVP disclosure would appear to support shareholders’ consistent strong support for Say-on-Pay over the past 12 years,” said Pay Governance Managing Partner and study co-author Ira Kay.