DATE PUBLISHED: DECEMBER 5, 2023
More than two-thirds of U.S. CEOs achieved or exceeded their target goals and earnings goals in 2022, with one out of four reaching their maximum goal levels. While these achievement rates result in handsome rewards for executives, consistently elevated rates of achievement raise questions about the rigor of the goal-setting process and may set a dangerous precedent for future payout expectations. In this second installment of our 3-part series, ISS-Corporate examines goal achievement in short-term (or annual) incentive awards as a whole and by metric groups. We also take a closer look at earnings metrics, which are the most prevalent group of financial metrics, and note industry-specific nuances.
