The Executive Compensation Assessor ("ERIXA") assists with precise evaluations of market pay. It is the only source of its kind that analyzes both data compiled from publicly available executive compensation surveys along with direct analyses of U.S. SEC proxy data numbers. ERIXA allows a user to review 314 top management and executive titles (View Positions) for over 5800 specific cities ( View Cities )as well as U.S. and Canadian national averages. The user may also specify an applicable SIC industry code, precise company size in terms of revenue, assets or number of employees, and the salary planning date. Click here for product specifications
What does the software do?
ERIXA provides subscribers with the tools to instantly compare their organizations to those organizations that most closely match by industry, company size, and location. From here, one can instantly gain access to the proxies and 10Ks of those most closely matched companies.
Additionally, ERIXA provides access to the archives of those companies, so that you may review past and present proxy and 10K reports, thereby gaining insight into the underlying philosophy employed by compensation committees in the formation of various total compensation packages. In short, a subscriber may track the moves of any compensation committee for any publicly traded company (1994 to present day).
What are the data sources for ERIXA?
ERI collects and compiles available salary surveys for thousands of jobs in North America and Canada. ERI has combined the executive survey database with the proxy statements and 10K reports filed annually by over 10,000+ publicly traded companies. ERI’s reseachers update the executive wage databases each quarter. Additionally, ERIXA provides subscribers instant access to the compensation tables and appraisal norms describing these publicly traded firms.
Proxy Analysis, Comparable Companies, and Historical Executive Data
After having entered the information on the individual profile screen (location, industry, and company size), the user may go to a proxy analysis screen, which provides not only the mean/median compensation, but also maximum reasonable compensation estimates for the top six executive positions.
From here, a graph plots proxy data points of varying size, indicating the types of industry match. Two-digit SIC matches, three-digit SIC matches, and four-digit SIC matches are displayed. By selecting a "dot" on the PC’s screen, the actual proxy statement is displayed (so long as ERI’s Platform Library is present.) There is, of course, a separate graph for each of the top six positions. With just a few clicks of the mouse, a compensation analyst can gain direct insight into the competitive pay rates of all six top management positions. Additionally, a menu allows you to select and print the following comparable companies’ summary proxy data.
- Print Individual Profile
- Print Executive Maximum Reasonable
- Print Compensation Analyses
- Print Position Description(s)
- Print Selected Comparable Companies
Why is Executive Compensation data so important?
In today's world, your company simply cannot afford to be without the most comprehensive and the most current data regarding executive compensation. To be without such information is to run the risk of many corporate dangers. Without an understanding of the true market rate for executive and top management positions, any of the following scenarios may well occur:
a.) By overcompensating executives or by myopically loading executive compensation packages, it is possible for executives in today's world to reap huge monetary benefits from corporations even though these same executives may have completely underperformed within their own job duties. The recent and highly publicized windfall severance package granted to a certain CEO within the toy retail trade industry is a perfect example of an improperly balanced executive compensation contract.
b.) Owners/Employees within C-Corporations may well run into problems with the Internal Revenue Service with regards to the issue of Reasonable Compensation. ERI's Maximum Reasonable Compensation assessment provides the very cannon by which the IRS examines the issue of Reasonable Compensation.
c.) The demand for executive talent within the U.S. labor pool is at an all-time high. Companies need not worry about upsetting key executives by undercompensating them, because these same executives will likely be out the door and on their way to a more competitive pay package before the company compensation committee has time to evaluate. Because Executive Recruiters value the Executive Compensation Assessor so highly, it is well worth the purchase of ERIXA, if only to stand upon equal ground.
While those in the field of compensation have traditionally sought to "attract, retain and motivate" employees through competitive compensation packages, this slogan applies to executive and top management positions on a much grander scale. Now the rule of thumb may well read: "attract" through competitive base pay and long term incentive packages, "retain" through strategically placed short term incentives and tangible perquisites, and "motivate" with long-term incentives that tie the monetary gain of the individual to the health and prosperity of the company. It is within the analysis of these compensation components that ERIXA excels.
How does ERIXA compare to other executive salary surveys?
Simply put, ERI has compiled the world’s largest, most accurate database for competitive pay information for top management and executive positions. What makes ERIXA so unique and so valuable, unlike traditional surveys, is that it allows subscribers to adjust for a number of variables. With the click of a button, the subscriber can toggle between mean and median salaries for key positions and can adjust base pay, incentive, and total compensation entries to the desired competitive rate. ERIXA places intricate information in an easy to use format that allows one to pick a specific percentage of pay and adjust pay rates accordingly.
ERIXA saves its subscribers time, money, and research effort, reflecting the nature of ERI. ERI is an outsource of compensation and benefits, now serving over 6,000 corporate subscribers.