Why use PeerTracker? (Click to expand)
PeerTracker takes the guess work out of performance-based equity awards. Plan designers and award recipients alike benefit from real-time views of corporate performance and potential award payouts, saving time, reducing communication expense and minimizing confusion about what it takes to drive peak results. Key PeerTracker benefits include:
- Drive Performance: Successful communication of performance-based awards can mean the difference between above and below target payouts; with PeerTracker, every award recipient has continuous access to the plan design details and market and financial performance data you want them to see. We can help paint the entire LTI performance picture.
- Offering Complete Performance Tracking - We track TSR and internal company-specific financial and operational metrics, such as revenue, earnings per share, and return on invested capital, for both absolute and relative performance plans.
- Multiple Language Sites: Help all of your participants understand their LTI performance, no matter their location or native language. Partnering with Glyph Language Services, PeerTracker is available in over 200 languages
- Complete Communication Package: Take your communication a step further by integrating a custom educational video, partnered with bendystraw llc
- Leverage Reliable Data: PeerTracker is powered by S&P's Capital IQ system, which access, financial and operational data, powering our performance calculations, for more than 11,000 domestic and 47,000 international companies trading in over 180 different currencies
- Calculate with Confidence: Our platform includes numerous quality control processes; you can rest easy knowing your plans are audited on a quarterly basis and certified at the conclusion of the performance period (Click here for a sample certification)
- Tracking Expertise: Our team has administered more than 1,100 plans through PeerTracker, developing extensive expertise and hundreds of customized communication and reporting solutions along the way, including partnering with stock plan administrators and brokers to integrate your sites into their participant experience.
- Easy Financial Reporting: Access historical performance data through PeerTracker to determine expected vesting amounts at the end of reporting periods
- New! Aon's Global Relative TSR Survey: Leverage the strength of Aon’s global reach to understand specific design nuances around the world. Using results from Aon’s annual survey of Relative TSR plans, including over 600 global companies, understand best practices and peer data globally. Learn more about the survey here.
- New! Aon's bendystraw Videos: A well-targeted employee education video can dramatically change understanding of technical information and perceived value of equity awards and other benefits. Video is the perfect medium for effective plan communication, breaking down concepts and easily stepping through examples. A significant number of studies have confirmed what we already know from our own experience – visual learning improves comprehension and is more likely to stick in long-term memory. Learn more about Aon's bendystraw videos here.
Resources and Thought Leadership (Click to expand)
Our team of equity valuation and governance experts frequently works with HR and finance leaders to assist them with performance equity design. To learn more about our approach, explore our latest thinking below:
- A Guide to Calculating Total Shareholder Return (TSR)
- A Guide to Calculating Percentile Rank
- Understanding Currency Conversions for Your Performance Plan
- Welcome to PeerTracker 3.0
- Behind the Firewall: How PeerTracker Works
- Best Practices for Managing Peer Groups in PeerTracker
Relative TSR Insights
- Relative TSR Plan Design Across the Atlantic
- Percentile Rank: A Big Problem for Small Peer Groups
- Avoiding Relative TSR Plan Design Oversights
- Measuring the Value of TSR Plan Communication (Or View: Summary Results)
- SEC Disclosure Requirements for Relative TSR Plans
- Communication: They Key to Winning the Relative TSR Race
- Managing Relative TSR with Global Peers
- A How-To Guide on Calculating Total Shareholder Return
- In Pursuit of Continuous Improvement: Danaher + TSR
Sample Sites (Click to expand)
Every PeerTracker site we build is customized to meet the demands of your specific plan design requirements. To see this in action, visit one of our sample sites below:
Sample 1 – Percentile Rank Plans
This sample site represents the most common relative TSR plan type, three overlapping percentile rank awards. In this case, Company ABC is competing against the components of the S&P 500.
- Sample 2 – Multiple Metric Plans
Many LTI plans use multiple performance metrics, and in this sample site we illustrate the real-time tracking of awards where 50% of the LTI plan vests based on relative TSR and another 50% vests via Net Income Margin growth.
- Sample 3 – Outperform Plans
For this plan, our sample site illustrates three overlapping outperform relative TSR awards, where Company ABC is competing against the Nasdaq Community Bank Index as a whole.
- Sample 4 – Market Stock Unit Plans
In this example, we depict three overlapping Market Stock Unit (MSU) plans, which function to determine the number of awards that vest solely based on Company ABC’s absolute TSR.
- Sample 5 – Relative TSR as a Modifier
Increasingly, relative TSR is used to modify award levels determined by a "base" internal metric. In this sample, relative TSR is translated into a performance factor that toggles payouts up or down.
- Sample 6 – Global Peer Group Plans
As business becomes more global, some firms now pick peer groups with companies traded on foreign exchanges. In this case, the Company ABC competes against 26 peers covering 8 distinct currencies.
- Sample 7 – Custom & Translated Communication
We recognize that companies like to communicate awards and performance differently, and may want to specifically focus communication in participants' native language. With that in mind, PeerTracker can be fitted to your company's communication strategy and to languages of your choice. In this example, we illustrate some of the creative additions clients have asked for in their PeerTracker sites.
PeerTracker Testimonials (Click to expand)
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Whether you want to learn more about performance equity plan design or need pricing information for PeerTracker, we're here to help.