Given that up to 80% of a Directors’ remuneration package could be linked to company performance it is not surprising that remuneration committees, shareholders and participants are focusing their attention on the choice of performance measures and the setting of appropriate targets.

Measuring Up is a companion to our annual report on remuneration of executive directors which provides in-depth analysis of incentive plan design. It looks in more detail at the performance measures used in incentive plans, both annual and long term, for executive directors and how companies have performed against these measures.

The report is based on current practice in the constituent companies of the FTSE 350, as at 1 May 2007. It provides detailed analyses of short and long-term incentive practice for executive directors in FTSE 350 companies, focusing on the balance of fixed and variable pay, the levels of payout available and achieved under incentive plans and the choice of performance measures used to underpin these plans. We have also analysed the performance of FTSE 350 companies by size and industry, over one year and three year periods based on a number of different performance measures.

The report 'Measuring up' is available electronically. For copies please register now.

NB. This report is not available to Professional Services Firms and individuals. Corporate applications only.