DATE PUBLISHED: APRIL 4, 2024
The majority of target goals set for S&P 1500 CEOs were higher in 2022 than a year earlier when the same metrics were used in annual incentive awards. On the surface, that’s an encouraging outcome as we generally expect companies to grow over time, setting increasingly challenging goals for management teams. But do those goals increase every time previous targets were achieved? And what happens the following year – are the higher goals achieved? Part one of our three-part series examined recent payout levels for annual incentive awards while part two focused on goal level achievement for earnings metrics. In this third and final installment, we take a deeper look at the goal setting process in 2022 and explore the connections between goals and actual outcomes over the span of 2021 and 2022.
