Recently, New York-based financial data and product development consulting firm, StreetFeeds announced they are launching their first proprietary data feed product – a “Pay Versus Performance” dataset. StreetFeed’s new PVP datasets are the first commercially available PVP data on the market.
Background on StreetFeed’s PVP Datasets
Last August, the Securities and Exchange Commission (SEC) adopted its final rules implementing the pay versus performance (PVP) requirement in the Dodd-Frank Act. The new rules are the culmination of various proposals by the SEC dating back to 2015 when the agency first issued proposed PVP disclosure rules required by the Dodd-Frank legislation. The SEC’s final rules apply to fiscal years ending on or after December 16, 2022, meaning the first filings with PVP disclosures started to appear in February 2023.
A quick overview of the data that companies must now file as part of their Pay Versus Performance disclosures can be found by clicking on the following link.
The following are some details associated with StreetFeeds and their new PVP database.
Provide general background on your firm. When were you founded, who founded the firm, and what was the primary business problem you were trying to solve?
Founded in 2010, New York based StreetFeeds is a financial information product and business development consulting firm established by data industry veteran Jeff West. StreetFeed’s specializes in helping firms create innovative data products and generating long term recurring revenue from them. Areas of specific focus for the firm include independent research, alternative data, smart beta indexing and ESG.
What type of data, services and related technology does your firm provide? Outline the unique data elements an asset manager can receive from you that are not available from others?
StreetFeeds’ new Pay Versus Performance database is the firm’s first foray into providing proprietary data and analytics. Firm management believes they are the first provider and only source currently for this data, which only began being reported in February of 2023.
The PVP database provides a comparable, objective, and quantifiable way to assess executive performance. By aligning compensation to measurable outcomes, the Board of Directors can ensure that rewards are allocated based on individual and corporate achievements. This transparency should promote fairness, motivate executives to perform at their best, and align
executive efforts with the organization’s goals.
By identifying discrepancies across competitors, organizations can identify patterns and trends that highlight potential inequitable compensation allocation. The pay-for-performance data acts as a valuable feedback mechanism for both Executives and the Board of Directors of an organization. It allows individuals to track the pay-for-performance progress, identify outlier compensation practices, and potentially uncover excessive corporate compensation expenditures.
Companies are always seeking effective ways to optimize performance and drive growth. In recent years, pay-for-performance data items have become valuable information that could uncover corporate governance irregularities and highlight a disconnect between executive pay and actual performance.
In addition, StreetFeed’s has enhanced this data by combining it with additional CEO/NEO performance and alignment data that they have used for years to measure management effectiveness.
How much history can a client obtain from you? How frequently is this data updated?
Clients can obtain up to 3 years of history for this PVP data, which is updated annually when companies provide their fiscal year disclosures.
Describe at least one “case study” of where your firm’s data, services or technology has proven to be predictive.
There are numerous studies which exist that show the tie between diverse types of executive compensation and company performance. Anecdotal evidence suggests that more holistic measures of executive compensation presented in “Pay Versus Performance” disclosures could have even stronger correlations with company performance. A few related studies include:
- The following 2020 BDO study states, “However, it should be noted that percentage change in CEO total compensation and change in TSR performance were quite consistent across all industries. This suggests compelling evidence for a pay-for-performance relationship.” https://www.bdo.com/insights/tax/ceo-pay-levels-and-pay-structure-predictors-of-company-performance#:~:text=Lower%20base%20salaries%20and%20higher,performance%20over%20the%20time%20period.
- In a 2019 Harvard study, the writers state, “As CEO economic ownership increases in dollar value, we observe superior performance in profitability margins and profitability momentum.” https://corpgov.law.harvard.edu/2019/05/13/ceo-ownership-corporate-governance-and-company-performance/
Who is your firm’s target market in the financial services vertical?
StreetFeeds’ PVP datafeed is primarily aimed at institutional investors, including mutual funds, pension funds, and hedge funds.
Who are some of your firm’s chief data competitors in the financial services market?
At present there are no other suppliers of PVP data in the marketplace. However, we assume that other providers of traditional fundamental company data will also enter the market, including S&P Global Market Intelligence, Refinitiv, Bloomberg, FactSet and others.
What makes your firm different from other firms providing similar types of data, services, & technology?
StreetFeeds, primarily known as a consulting firm focused on marketing financial data and helping firms develop new research, data, and technology products, has announced they are launching their first proprietary data feed product suite — the StreetFeeds Pay Versus Performance (PVP) database. This product captures an entirely new set of data which only began being reported in SEC filings earlier this year and includes additional data items that they have used in measuring executive effectiveness.
Pay-for-performance data offers a crucial element to consider as part of corporate governance evaluations. By leveraging this valuable information, companies can objectively measure performance, determine the effectiveness of executive incentive programs, and identify excessive compensation programs. As organizations strive for excellence in today’s competitive world, harnessing the power of pay-for-performance data is a vital component in aligning shareholder and business outcomes.
StreetFeeds is unlike most other data vendors who focus more on the data collection process and less on the practical use cases clients might have in using the data to make management or investment decisions.
Who are a few cornerstone clients in the financial services market that use you? How do they use your platform?
Independent investment research provider, Management CV, uses a portion of this data to analyze and rank the effectiveness of executive teams.
What is your firm’s commercial model? What is the price range for your service?
StreetFeeds provides feeds of the PVP data in any delivery format required by customers. Clients may license this data annually. Although pricing for the PVP database has not been established, the firm indicates that they will price the data aggressively.
What are a few interesting facts about your firm?
StreetFeeds was founded by Jeff West, a 20-year veteran of the financial research, data, and technology industries. Jeff has extensive experience in business development, product design, marketing, and licensing.
Contact information
Jeff West
516-946-5695
jeff@streetfeeds.com