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June 14, 2010
Many Small Employers Offer Executive Compensation to 10% or More of Employee Base
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enteen percent of employers report that their organization provides at least some components of an executive compensation plan to 10% or more of its employee base, according to a recent survey of Executive Compensation practices by BLR.

This finding was especially prevalent among companies with less than one hundred employees. Ten percent or more of employees were reported to be eligible for an executive compensation plan in 31% of small companies. Regionally, employers located in the Southern United States were most likely to offer executive compensation to ten percent or more of their employee base—28% of Southern companies did so.

However, most employers (67%) report that 3% or less of their employee base is eligible for executive compensation.

Meanwhile, over two-thirds (67%) of companies reported that they include a short-term, or annual, component in their executive compensation plan; virtually all companies that offer this component pay awards in cash. Surprisingly, over one-third of companies with a long-term component to their plan also made long-term awards in cash.

The survey, which included approximately 300 responses, was conducted by BLR's HR Daily Advisor in April-May 2010.

For detailed survey results, see 2010 Fringe Benefit Suvey Series - Executive Compensation Practices.

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