Annual Incentive Payouts: Are Target Goals Too Modest?

Well-designed performance awards motivate executives to grow their businesses, streamline operations and deliver value to shareholders; but when poorly designed, they serve as cash machines for executives delivering mediocre results. In this report, ISS Corporate Solutions examined the performance of S&P 1500 CEOs against their targets over the last five years to find the similarities and differences between industries and between smaller and larger companies.