The benchmark report has several core elements. At the core of every business, ownership drives incentives. This starts from the top of every organization. With the CEO. Here is what we breakdown in our 2024 Compensation Report.

Ownership drives incentives

• Cash salaries are even, right? Not across every industry

• What about bonus profits? Well this is different across business models

• Stock compensation is the money. This is where millions are made.

CEO benchmark

Executives get compensated in three ways: cash salaries, bonus profits, and stock options. 

To create Long-Term Alignment, CEO's compensation structure incentivizes long-term growth and value creation for the company, not just short-term gains. We do this in the following ways. 

This is a template package. It has a spreadsheet list of 400 software CEO salary packages and a 250-500 word rubric comp package. Review the performance-based, profit-sharing, equity-based. 

Purpose of the CEO benchmark

Purpose:

The "2024 CEO Benchmark Report" provides a comprehensive analysis of CEO compensation packages and incentives across 400 software companies. The purpose is to empower investors and hiring managers with data-driven insights to:

• Benchmark CEO salaries and incentives against industry norms

• Identify misaligned incentives and potential "red flags"

• Spot undervalued or overvalued software stocks

• Strengthen negotiation positions when setting CEO pay

Key Findings:

• Equity Ownership and Long-Term Alignment: CEOs with high equity ownership and strong performance across multiple metrics (stock price, revenue growth, employee/customer satisfaction) suggest strong alignment between their incentives and the company's long-term growth.

• The Risk-Adjusted Incentive Score: This metric factors in CEO compensation, company risk profile, and equity value to assess the level of financial risk taken by the CEO. A high score indicates that the CEO's incentives are well-aligned with shareholders.

• Compensation Structure and Innovation Correlation: The report explores potential correlations between CEO pay structure and indicators of innovation, such as Git commit activity and successful product launches.

• The Talent War Angle: The report examines CEO pay practices that impact retention of top talent in the competitive software industry, including churn rates and the cost of replacement.

Why Buy the CEO Benchmark Report

Gaining an Edge in Evaluating Executive Performance and Pay

Are you an investor seeking to make informed decisions? This CEO Benchmark Report is your key to unlocking valuable insights into executive compensation practices across different industries.

Who is This For?

• Equity Investors: Gain a deeper understanding of how companies reward their top executives, potentially influencing long-term company performance and shareholder value.

• Proxy Advisors: Analyze compensation packages and identify potential red flags when advising clients on corporate governance issues.

• Compensation Consultants: Benchmark executive pay practices within specific industries to ensure clients offer competitive and performance-driven compensation structures.

• Boards of Directors: Evaluate the company's CEO compensation strategy relative to industry norms and best practices.

Use Cases and Benefits:

• Make Informed Investment Decisions: Don't be fooled by headline numbers. This report goes beyond base salary to analyze total compensation packages, including bonuses and equity grants, allowing you to assess if CEO pay aligns with company performance.

• Identify Potential Overcompensation: Benchmarking against industry data helps you identify CEOs who might be receiving excessive compensation relative to their company's performance.

• Support Proxy Voting Decisions: Gain insights to support informed voting on executive compensation proposals at shareholder meetings.

• Design Competitive Compensation Packages: Stay ahead of the curve by understanding industry trends in executive pay structures.

• Ensure Effective Corporate Governance: Evaluate if the company's compensation practices incentivize long-term value creation for shareholders.

Competitive Advantage:

In today's dynamic market, gaining an edge is crucial. This CEO Benchmark Report equips you with the knowledge to:

• Ask the Right Questions: By understanding industry norms, you can hold companies accountable for their executive compensation practices.

• Navigate Complex Compensation Packages: Demystify the intricate details of CEO pay structures, including bonus metrics and equity grants, to assess true value.

• Make Data-Driven Decisions: Back your investment decisions and corporate governance positions with reliable data and insights.

Don't settle for generic information. Gain the power of comprehensive analysis with this CEO Benchmark Report.

Download the CEO Benchmark Report here.