Over 2,000 companies reported that they engaged Compensation Consultants in the past two years. Interestingly, the compensation consulting market is dominated by only a handful of players. Seven consultants in particular control about two-thirds of the market. Two of these consultants, Towers and Mercer, stand out as being a notch above the rest. Incentives such as stock options, cash bonuses and other forms of remuneration have become common features in the pay packages of top executives. SEC Rule Release 33-8732A offers investors and regulators a window into how these pay packages are developed and managed.
