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MORE COMPANIES MAKING CHANGES IN THEIR EXECUTIVE PAY PRACTICES

 MORE COMPANIES MAKING CHANGES IN THEIR EXECUTIVE PAY PRACTICES
 CLEVELAND, Aug. 24 /PRNewswire/ -- New evidence suggests that many companies are considering or making changes in their senior management pay plans, according to Towers Perrin, a leading management and compensation consultant.
 Based on results from the firm's 1992 executive compensation survey and recent client experience, "There seems to be a spirit of change in the air," said Towers Perrin principal, David Laier. He cited four emerging trends in executive pay practices:
 -- Moderating annual compensation levels and some refashioning of annual and total pay packages.
 -- Greater use of long-term plans that reward only for measurable performance gains.
 -- Increased reliance on techniques that put company stock into top management hands and attempt to keep it there for some period of time.
 -- Growing awareness that effective shareholder relations -- indeed, corporate communications generally -- demands forthright disclosure of compensation philosophy and arrangements.
 "Obviously, more companies are becoming aware that pay practices that align with financial results are not only good corporate communications, but good business as well," commented Laier. "Ensuring that long-term plans reward measurable performance and penalize its absence is a goal that most now support," he added.
 This year's Towers Perrin executive compensation study confirmed a continuing pattern of change in CEO pay practices. Among the key findings were:
 -- Median CEO total annual compensation remained flat.
 -- A growing number of CEOs received no salary increases or bonuses.
 -- The mix of components in the CEO pay package continued its gradual shift from base salary toward long-term incentives.
 "For the second year in a row, the sharpest increase in long-term incentive prevalence came in performance share plans, which base payouts on a combination of financial and market performance. More than half of the companies in the study can now grant performance shares if they wish, strong evidence of the growing interest in focusing management attention on both shareholder return and strategic goals," concluded Laier.
 The Towers Perrin 1992 executive compensations study examined CEO pay at 350 of the largest 1,000 companies in the U.S. (portions of the analysis were published earlier in the year in The Wall Street Journal). Eighty-five percent of the group studied are industrial and service companies. Their sales range between $600 million and $116.5 billion, with median sales at $4.5 billion.
 Towers Perrin is one of the world's largest management consulting firms. It helps organizations manage their investment people, advising them on human resource management, employee benefits, compensation and communications as well as overall strategy and organizational effectiveness. The firm is headquartered in New York City and has 5,000 employees in 66 offices worldwide.
 -0- 8/24/92
 /CONTACT: Tom Egan, 216-575-1051; or Dave Laier, 216-575-1299; both of Towers Perrin/ CO: Towers Perrin ST: New York IN: SU:


SM -- CL003 -- 2484 08/24/92 09:42 EDT
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Date:Aug 24, 1992
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