Shareholders have found Farient’s pay for performance analysis to be a valuable part of their proxy research and decision making. According to investors, the Farient Performance Alignment Reports (PARs) provide a highly valued service to support Say on Pay analysis and decision making.
What shareholders are saying about PARs:
- Farient Information Services’ research is “focused squarely on pay-for-performance relationship … does a very good job of evaluating the reasonableness of a firm’s compensation structure”
- PARs are “extremely helpful”, “another level of analysis”, “intuitive”, “easy to use”
- Farient’s approach is “sophisticated”
Farient Performance Adjusted Compensation (PAC) and PARs provide several advantages over other pay for performance approaches:
- PARs are focused squarely on the pay for performance relationship, to evaluate the reasonableness of a company’s pay structure
- Dynamic, at-a-glace graphical presentation shows performance scenarios across the Total Shareholder Returns (TSR) spectrum, leading to quick insights on alignment and potential pay issues
- PAC matches the time horizon of pay to that of performance, by measuring all elements of long-term incentive (LTI) compensation after performance has happened
- PAC and the Alignment Zone allow for clear comparisons between companies:
- with different pay mixes, through a consistent valuation of equity awards
- of different sizes, by adjusting the Alignment Zone
- Farient expertise as a compensation consultant brings a different perspective and understanding to pay for performance research and analysis
PARs are recognized as an independent, expert-based research service on pay for performance alignment. The leading global proxy advisor, Institutional Shareholder Services (ISS) now provides access to Farient PARs on its Proxy Exchange™ platform as an alternative source of trusted pay and performance information.