Well, as I’m sure you know, RiskMetrics consolidated its Pay for Performance (P4P) Policies into a more unified approach for 2010. Additionally, RiskMetrics tweaked the P4P Policy a bit. However, the initial screen applied to determine whether a more in-depth analysis is warranted remains comparing a company’s 1- and 3-year Total Shareholder Returns (TSR) to that of its GICS industry group medians. If a company’s 1- and 3-year TSRs are both below its GICS industry group medians, then RiskMetrics will take a closer look at things. More specifically, RiskMetrics would look more closely at the relationship between company performance and the CEO’s pay during the past five years, paying more attention to the prior 3 years.
RiskMetrics figures out the GICS industry group 1- and 3-year TSR medians on a quarterly basis. So for companies that have fiscal years that end between November 15, 2009 and February 14, 2010, RiskMetrics will apply the 1- and 3-year TSRs it calculated for the GICS industry groups as of December 30, 2009. Those figures were recently published and are available on RiskMetrics website at: http://www.riskmetrics.com/policy/2010/PerformanceLists
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