A survey of 224 organizations found that approximately 48% indicated that governance-related issues were among their top priorities for 2016, a significant increase from 2015. The top concerns were enhancing proxy and compensation committee report disclosures, addressing shareholder concerns over executive pay votes, developing appropriate peer groups, and implementing pay ratio policies. Governance programs like stock ownership guidelines and trading limits were most common for CEOs and direct reports, declining at lower levels. Most organizations have begun outlining their approach to collecting data and disclosing CEO pay ratios compared to median employee pay in 2017.

1. Risk. Reinsurance. Human Resources.
Aon Hewitt
Talent, Rewards & Performance
In spring 2016, Aon Hewitt conducted its annual Hot Topics in Executive
Compensation survey of 224 organizations to find out what concerns they
have regarding corporate governance. Approximately 48% of respondents
indicated that governance-related issues are among their top organizational
priorities for the year. Corporate governance saw the largest increase in
prevalence from 2015 (35%) to 2016 (48%). Here are some of the top
concerns.
2016 Trends in
Corporate Governance
Talent, Rewards & Performance
2016 Trends in
Enhancement of
Proxy/CD&A disclosures
Addressing Shareholder/
Say-On-Pay concerns
Development of an
appropriate peer group(s)
Implementaion of
Pay Ratio Policy
Review/Implementation
of Other Policies *
0% 20% 40% 60% 80% 100%
41%
34%
24%
22%
14%
11%
Most Prevalent Governance-related Priorities for 2016
Addressing the policies/
regulations of Proxy
Advisory Groups
*The review / implementation of other policies include
recoupment and share ownership arrangements.
Top 5 Most Prevalent 2016
Organizational Priorities 2016
% change
from 2015
Competitiveness
of the targeted total
compensation package
for executives relative
to the external market
66% 0%
Governance-related
Topics 48% +13%
Alignment of executive
compensation to company
performance (i.e., financial
and/or TSR performance)
45% 0%
Alignment of executive
compensation to company
performance (i.e., financial
and/or TSR performance)
35% -2%
Redesign / implementation
of long-term incentive
program
33% +1%

2. 2 2016 Trends in Corporate Governance
Prevalence of Governance Programs
Public CEOs and their direct reports are commonly included in governance programs. Stock
ownership guidelines and trading limits are most common. At lower levels, the prevalence of
governance decreases as the graph below indicates.
Beginning with 2017 annual reports, public companies will need to disclose how the annual total
compensation of the CEO compares to the annual compensation of a median employee. Most
organizations have begun to outline an approach. Challenges include data collection and
employee reactions.
86%
of surveyed
organizations
indicated that
CEOs and their
direct reports have
stock ownership
guidelines.
80%
of the publicly-held
companies surveyed
indicated that they
have begun to
outline an approach
to collect data and/
or identify potential
challenges to pay
ratio disclosure.
CEO / Level 2 Level 3
12%86%
45%
84%
75%
64%
48%
68%
55%
65%
57%
53%
46%
29%
14%
Stock
Ownership
Guidelines
Limited
Trading
Windows
Recoupment
of Short-term
Incentives
Recoupment
of Long-term
Incentives
Hedging
Policies
Equity
Holding
Periods
Pledging
Policies
Pay Ratio
Identifying data challenges
based on our internal systems
Preparing a preliminary
estimate of the pay ratio
Starting to outline an approach
to collect needed data
Discussing concern over
employee reactions
Identifying statistical
sampling methods
0% 20% 40% 60% 80% 100%
63%
57%
35%
28%
16%
2%
Disclosing ratio in 2017 even
though not required until 2018
Prevalence of Actions
Prevalence of Programs
Are you among the 48% who see governance as a top priority? Check out our CG Pro suite of reporting tools to analyze
competitive governance practices. Contact us for more information.

3. 3 2016 Trends in Corporate Governance
About Aon
Aon plc (NYSE:AON) is a leading global provider of risk management,
insurance brokerage and reinsurance brokerage, and human resources
solutions and outsourcing services. Through its more than 72,000
colleagues worldwide, Aon unites to empower results for clients in
over 120 countries via innovative risk and people solutions. For further
information on our capabilities and to learn how we empower results
for clients, please visit: http://aon.mediaroom.com.
© Aon plc 2016. All rights reserved.
The information contained herein and the statements expressed are of a general nature and
are not intended to address the circumstances of any particular individual or entity. Although
we endeavor to provide accurate and timely information and use sources we consider reliable,
there can be no guarantee that such information is accurate as of the date it is received or that
it will continue to be accurate in the future. No one should act on such information without
appropriate professional advice after a thorough examination of the particular situation.
This report was created using data from the 2016 Aon
Hewitt Hot Topics in Executive Compensation Survey.
For more information about Executive Compensation
surveys, data solutions, and consulting services,
please contact surveysupport@aonhewitt.com.