Compensation Modeling Solutions

Tools and services to build strong, balanced equity compensation plans.

Capital stock is the lifeblood of the modern public corporation, enabling growth, supporting mergers and acquisitions, and attracting talent through equity-based compensation. In addition, incorporating restricted stock or option into compensation plans is seen as one way to align pay with company performance.  However, since stock represents institutional investors' sole ownership interest in the underlying company, shareholders expect executive management and boards to be good stewards of this valuable resource.  The recent outpouring of shareholder frustration with executive pay demonstrates the need for objective analysis and modeling tools to support equity-based compensation plan design.

To help corporate issuers meet shareholder expectations in equity stewardship, as well as to provide an objective basis for your executive compensation plans or other equity activities, Risk Metrics Group offers a set of tools and services for modeling executive compensation, changes in capital structure and stock option exchange.

These services include:

• Compass - online, web-based tool that sets the standard for executive compensation modeling
  
• Compensation Advisory - turnkey executive compensation modeling and analysis to help you determine an optimal plan design
  
• Capital Structure Authorization Advisory - support to evaluate the financial impact of proposals to increase common or preferred stock, relative to widely-accepted corporate governance guidelines
  
• Option Exchange Advisory - helps you structure an option exchange program that is not dilutive, for use in situations where there is a high stock option overhang