Compensation Consultants in the S&P 500: Key Insights from 2020–2024
Nearly every S&P 500 company relies on external compensation consultants to guide executive pay decisions—and the market is highly concentrated among a handful of firms. According to MyLogIQ’s CompanyIQ® platform, which tracks executive compensation trends and disclosures, the latest analysis reveals how this critical advisory market has evolved over the past five years.
Key Findings from CompanyIQ® Compensation Research
- Widespread reliance: 99% of S&P 500 companies disclosed using at least one external compensation consultant between 2020 and 2024.
- Concentrated market: Just five firms—FW Cook, Meridian, Semler Brossy, Pay Governance, and Pearl Meyer—account for well over 60% of all engagements.
- Market leader: FW Cook consistently held the top spot, advising about 1 in 5 S&P 500 companies.
- Growth leaders: Pay Governance and Semler Brossy gained the most new clients during the period.
- Stability rules: 74% of companies kept the same consultant throughout the five years, reflecting strong long-term advisor relationships.
- Multiple advisors: Some large firms, including Alphabet, Nike, and ServiceNow, engaged more than one consultant for added perspective.
Consultant Market Share Highlights (2020–2024)
- FW Cook – 19%
- Meridian – 15%
- Semler Brossy – 11%
- Pay Governance – 10%
- Pearl Meyer – 9%
- Compensia – 6%
- Exequity – 4%
- Aon – 4%
- Willis Towers Watson – 3%
- Mercer – 3%
Smaller players like Korn Ferry, Farient Advisors, and others held niche positions, often serving just a handful of clients.
Consultant Switching Trends
While most companies stick with their advisors, notable shifts did occur:
- Bank of America moved from Farient to Semler Brossy.
- Nvidia switched from Exequity to Semler Brossy.
- Salesforce transitioned from Compensia to Semler Brossy.
These moves show that while relationships are stable, competitive shifts happen among the top-tier firms.
Why This Matters
Compensation consultants play a critical role in aligning executive pay with shareholder interests, market trends, and regulatory expectations. With the majority of S&P 500 companies relying on a concentrated group of advisors, their influence on corporate governance and pay practices is significant.
How CompanyIQ® Powers These Insights
The findings come directly from MyLogIQ’s CompanyIQ® research platform, which provides comprehensive analytics on corporate disclosures, including executive compensation, governance, and ESG reporting. By tracking data across years and industries, CompanyIQ® helps boards, advisors, and investors understand trends and benchmark practices with precision.