2021/2022 Executive Change in Control ReportacrequeWed, 11/17/2021 - 04:15
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Alvarez & Marsal's (A&M’s) Compensation and Benefits Practice is pleased to share the results of its 2021/2022 Executive Change in Control Report. This report analyzes the change in control agreements of the top 200 publicly traded companies in the U.S. across 10 different industries. Once again, we partnered with Equilar, who added commentary on their research and observations regarding compensation trends in recent actual transactions.
Please click below to explore the findings of the 2021/2022 Executive Change in Control Report on our interactive page and download the full report:
Key findings include:
- Average change in control benefits remain substantial, averaging $39,339,956 for CEOs and $12,271,927 for CFOs.
- The most common cash severance multiple in connection with a change in control is between 2- and 2.99-times compensation (48 percent for CEOs and 53 percent for CFOs).
- The prevalence of double trigger vesting for equity awards has continued to remain high with 97 percent of companies having double trigger vesting for some or all of their awards.
- Excise tax gross-ups continue to be phased out in plans and agreements with only five percent and three percent of companies providing this benefit to their CEOs and CFOs, respectively. However, we observed gross-ups being added during actual deal negotiations at 10 percent of the top 10 deals during 2021.