2024 Top 250 Annual Incentive Plan Report
EXECUTIVE SUMMARY Our 2024 Annual Incentive Plan Report provides a comprehensive review of the annual incentive plans of the top 250 largest companies in the S&P 500 by market capitalization. Annual incentive plans are critical tools used to align executive compensation with a company’s short-term goals and support talent attraction, motivation and retention objectives. This […]
Jose Furman is a Consultant at FW Cook. This post is based on an FW Cook memorandum by Mr. Furman, Ian Kim, and Michael Kenney.
EXECUTIVE SUMMARY
Our 2024 Annual Incentive Plan Report provides a comprehensive review of the annual incentive plans of the top 250 largest companies in the S&P 500 by market capitalization. Annual incentive plans are critical tools used to align executive compensation with a company’s short-term goals and support talent attraction, motivation and retention objectives. This report examines trends in financial and non-financial metrics, goal-setting practices, and actual payouts, comparing findings over 2-year and 5-year periods, which coincide with our 2022 and 2019 reports. ESG trends are analyzed based on findings from the last 3 years, corresponding with our 2023 and 2022 Use of ESG in Incentive Plans Reports.
Please note that while this report references 2024 as the publication year, it primarily reflects 2023 compensation practices. Similarly, references to 2023, 2022 and 2019 publication years correspond to 2022, 2021 and 2018 compensation practices, respectively.