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How the Pay-for-Performance executive compensation and remuneration test works

The compensation test of the Obermatt Stock Screener shows how much performance shareholders receive in relation to executive remuneration and compensation paid. The more performance per executive compensation paid, the better the rank in the Obermatt Pay-for-Performance metric.

For this test, you select the investment criterion Pay-for-Performance. Pay-for-Performance shows highest values (100%) for those companies where shareholders have received most performance in relation to executive remuneration and compensation paid. Companies with low Pay-for-Performance values (close to 0%) have paid large executive remuneration and compensation in relation to the performance that shareholders have received.

Important: Any Obermatt Pay-for-Performance metric value above 20% is a sign for an adequate remuneration policy (because less than 20% of all companies have excessive pay policies).

This is how you test if executives have been compensated in line with performance:

  1. Enter the share titles and select the criterion Pay-for-Performance
  2. Click "Show Result“
  3. The higher the rank for Pay-for-Performance, the more performance shareholders receive in relation to executive remuneration and compensation

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