Towers Watson Data Services Releases the 2010/2011 Report on Long-Term Incentives, Policies & Practices

ROCHELLE PARK, N.J., Nov. 9, 2010 /PRNewswire/ -- New LTI data reveals a 20% increase in total grant values and a 33% increase in total shareholder return for public company participants, according to data from the recently published 2010/2011 Report on Long-Term Incentives, Policies & Practices from Towers Watson Data Services.

The report, which includes data from 210 firms (median revenue, $3 billion) representing a cross-section of industries, provides participating companies the ability to learn about LTI practices in the marketplace and to compare their offerings with those of other participants. It was developed by the compensation consultants at Towers Watson and the compensation survey professionals at Towers Watson Data Services.

The report's latest findings on total LTI awards point to a significant upturn from 2009, which saw declines in total grant values and total shareholder return (16% and 38%, respectively). The positive LTI movement also reflects strong stock market performance.

In addition to providing the latest data on total LTI award values, the report also covers changes in most recent grants and future directions; LTI awards and the grant process: Award timing, individual participation/awards, equity/long-term choice, global/local national employees outside the U.S.; LTI plan design by award type: Stock options, restricted stock/units, performance cash/shares (LTIPs), SARs, phantom stock; and stock ownership and share retention guidelines.

Among the report's other findings, restricted stock/units continue to displace stock options as the most dominant form of long-term incentive award.  In 2010, the overall prevalence of restricted stock/units climbed to 71% from 65% in 2009, an occurrence that David Seitz, a senior compensation consultant at Towers Watson, believes is a "reflection of the sluggish economy and stock market. While stock options are not dead," said Seitz, "they certainly do not represent a strong incentive in a flat stock market environment."

Also, revenue was the most common performance metric in executive long-term plans (26%), which represents a 25% increase over 2009. According to Seitz, "the surge in revenue as an incentive performance metric reflects the importance of top-line revenue growth at this point in the economic cycle."

Results from the 2010/2011 LTI database are available only to participants.

About Towers Watson Data Services

Towers Watson Data Services is a leading provider of compensation, benefits and employment practices information to the global employer community. From offices around the world we solicit, analyze and publish an extensive library of online survey reports. Our compensation databases are recognized worldwide as the most reliable source of current data for compensation planning.

Covering more than 100 countries across six continents, our data centers in the U.S., Canada, Europe, Middle East, Asia and Latin America annually compile reports on the remuneration, benefits and employment practices of local and multinational companies. Our "in-country" experts apply their local knowledge of the varied employment markets, practices and customs to deliver a complete compensation picture that can be used to create sound, market-based pay programs for entire organizations. Our international databases contain compensation information covering millions of employees based on the annual survey participation of organizations ranging from emerging growth companies to many of the world's largest conglomerates.

SOURCE Towers Watson Data Services