ESOP Companies Rely on Board Alone to Set Executive Pay

According to an NCEO survey of 204 closely held ESOP companies, 60% of the companies have their entire boards decide on executive pay, while 15% employ outside compensation consultants, and 12% rely on a committee of independent outside board members to make the decision. In another 12%, pay is set by the CEO.

The findings are from data now being analyzed by the NCEO. Beginning next month, we will be able to provide customized reports on levels of executive compensation and incentives based on the survey. Details will be provided in a future update.