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Now it's your turn to solve a real-life problem!
If you have a subscription to ERI's Executive Compensation Assessor (XA), find the answer to the following problem:
Problem Statement
Happy Valley Inc. is a home builder headquartered in Anaheim, California. It has developments in the South and West. The company has annual revenues of $3 billion. It is one of the largest home builders in the U.S. and recruits top talent nationwide.
You want to find out how much equity compensation peer companies are giving their Chief Executive Officers so you can determine if Happy Valley’s CEO has a competitive package.
Use the eSIC Code 1500 to find Building Construction companies and you want to view data at the median. You find nine peer companies in the $1 to $5 billion revenue range.
Exercise Question
Based on what peer companies are providing, which of the following is a reasonable equity compensation package for Happy Valley’s CEO?