In a Minneapolis/St. Paul Business Journal article comparing the executive compensation of large Twin Cities public companies, Amy Seidel commented on a general shift in executive compensation from high base salaries to performance-based payment ratios. While salaries are down overall, most increased pay came from stock awards, pension contributions and bonuses.
"Those shifts are part of a broader trend toward performance-based compensation, and those benefits are increasingly being linked to a company's performance relative to its competitors," Seidel explained. "Companies want to make sure it's not a situation where they're overpaying just because everyone is doing better in a high tide, but rather that they're doing as well or better than their peers. Boards and investors are really trying to show that pay-for-performance linkage."