The executive pay model is under significant pressure from a variety of sources: a difficult economic environment, highly volatile financial markets, continued criticism from pay critics and new legislative initiatives. The most immediate impact has come from legislation; the bank bailout package passed by Congress in October 2008 includes lower pay cap deduction levels, an expanded definition of golden parachutes and limits on incentives to take “unnecessary and excessive risks” for a company. While these provisions have not yet been applied to the rest of corporate America, influential lawmakers have indicated that they intend to introduce similar restrictions in the near future.
As health costs continue to rise and the economy slows, employees are being challenged to take more responsibility for their own health. But, in order to develop effective plans and support programs for employees, employers must first understand what drives their workers’ health care decisions.
The 2008/2009 study findings show that an integrated approach to reward and talent management correlates not just with improved attraction and retention results but also with stronger financial performance.
In this report, Watson Wyatt Worldwide analyzes disclosures for fiscal year 2007 under Financial Accounting Statements 87 and 106 (FAS 87 and FAS 106), as amended by FAS 132 (Revised 2003) and the new FAS 158. The disclosures are from the most recent annual reports or financial statements of the FORTUNE 1000. This report summarizes the assumptions used by companies in the calculation of pension expense and obligations; the disclosure of pension assets and obligations under FAS 87; and disclosures regarding postretirement benefits other than pensions, primarily retiree health and life insurance benefits, under FAS 106. This summary report is the 21st in a series by Watson Wyatt of annual analyses of FAS 87 and the 15th to analyze FAS 106 disclosures.
In The Defined Contribution Plans of FORTUNE 100 Companies, Watson Wyatt Worldwide examines the 401(k) plans offered by 78 FORTUNE 100 companies in 2006, including eligibility and vesting rules, employee and employer contributions, and plan investments and expenses.
Now in its 13th year, the National Business Group on Health/Watson Wyatt Employer Survey on Purchasing Value in Health Care identifies the actions employers are taking to control costs and improve employee health and productivity.
Managing Executive Compensation in the Shareholders’ Interests, Watson Wyatt’s 2008 Report on Directors’ and Investors’ Views on Executive Pay and Corporate Governance, examines the challenge directors face in addressing criticisms of the executive pay model in a dynamic labor market. Overall, the opinions of both directors and investors alike suggest that the U.S. corporate governance model is continuing to improve on perceived shortcomings.
Watson Wyatt’s 2007/2008 Onsite Health Center Survey – the largest survey of organizations that operate onsite health centers – provides insight into current trends in establishing and managing onsite employee health centers. Specifically, it details the significant differences between onsite health centers opened before and after 2000 and identifies several critical areas for improvement.
One hundred seventeen companies participated in Watson Wyatt’s Survey on Annual Benefits Enrollment. Respondents were mostly senior-level HR managers at large companies. The six-question survey was conducted in December 2007 at the end of the annual enrollment process. The median company size was 10,000 employees with four health plans.
Over the past decade, significant changes have occurred in the large-company retirement plan marketplace: the growth of defined contribution plans, conversions to hybrid plan designs (e.g., cash balance plans) and increasing regulatory and financial pressures. Watson Wyatt’s Retirement Plan Design: Past, Present and Future examines trends in employers’ retirement plan strategies and provides insight into their decisions, motivations and plans for the future.
Technical and Policy Papers are available for download free of charge to registered members of My Watson Wyatt .
