2023 Top 250 Report

Persisting economic uncertainties are challenging companies’ ability to establish long-term business forecasts and causing some to reassess long-term incentive plan designs. Stock prices remain volatile in certain industries despite the rebound in the U.S. stock market since the pandemic-related crash in 2020. New challenges have emerged including global supply chain disruptions, persistent inflation, Federal Reserve policy changes, evolving labor markets, and an increasing investor focus on efficiency.

Since 1973, FW Cook has published annual reports on long-term incentive grant practices for executives. This report, our 51st edition, details executive long-term incentive practices at the 250 largest companies by market capitalization, with special focus on design trends that have emerged since the COVID-19 pandemic (i.e., pre-2020 to current).

• The prevalence and grant value mix of award vehicles remain consistent with pre-pandemic practices, with performance-based awards continuing to be emphasized by most companies.
• Goal-setting uncertainty is influencing companies’ performance-based award structures, as evidenced by emerging practices in performance metric selection, goal-setting, and performance periods.