Overview
This report analyzes the design of annual incentive plans (“AIPs”) for each of the ClearBridge 300 companies.
Annual incentive compensation is a critical element of attracting and retaining executives, while motivating these executives to achieve the company’s key short-term business objectives. In 2024, annual incentive plans continued to be predominately formulaic, with few examples of discretionary plans in the market. This material examines the design details of these programs.
The compensation practices for non-employee directors were reviewed based on proxy statement disclosure for each of the ClearBridge 300 companies.
Contents of Report
ClearBridge 300 company practices summarized in this report include:
- Type of Annual Incentive Plan
- Number of Performance Measures / Weightings
- Types of Performance Measures
- Performance Modifiers
- Payout Leverage
The ClearBridge 300 Companies
The ClearBridge 300 consists of 300 companies: 100 companies in the S&P SmallCap 600® Index (“Small-Cap”), 100 companies in the S&P MidCap 400® Index (“Mid-Cap”), and 100 companies in the S&P 500® Index (“Large-Cap”) in order to provide a representation of the U.S. market.
Further detail on the ClearBridge 300 companies and methodology for this report can be found in the Appendix of the report.
