Fewer employers offering bonuses and guaranteed severance
Companies are scaling back on the pay packages they're offering new executives as part of recession-related cost-cutting, according to a new survey.
The survey by ExecuNet of 476 search firm consultants and HR professionals in the United States found 70 per cent of executive compensation packages included performance bonuses in 2009, down from 80 per cent in 2008.
Companies also trimmed sign-on bonuses with only 29 per cent of packages including this incentive in 2009, down from 36 per cent last year.
Employers are also shying away from guaranteed severance packages. The portion of executive compensation packages devoted to guaranteed severance dropped 10 per cent this year, from 44 per cent in 2008.
However, fewer employers are concerned with non-compete agreements, with just 27 per cent of compensation packages including a non-compete agreement, down from 38 per cent last year.
Employers have also changed the composition of compensation packages, with just 32 per cent of pay packages being devoted to equity compensation, down from 51 per cent in 2008.
