IDS ECR Research File 65, August 2004

Boardroom Incentive Report 2004

This Research File from the IDS Executive Compensation Review provides an essential insight into incentive practice in named FTSE 350 companies.

Based on extensive analysis of company accounts, the report covers all the main areas of incentive plan design including:

• recent trends and the balance between fixed pay and incentives
• analysis of the way in which annual bonus schemes are structured and payments determined
• the latest developments in share option schemes, reviewing coverage, grant policies, performance conditions and vesting schedules
• an outline of how long-term incentive plans work, giving details of participation, award limits and targets
• an overview of co-investment plans which are designed to encourage executives to accumulate shares
• a review of the methods used to value share-based awards.

The final section of the report features extracts from the latest annual accounts illustrating the range of incentive scheme practice adopted by remuneration committees.