Executives are facing moderate salary growth and tougher performance metrics in 2012, according to a recent survey from Pearl Meyer & Partners, an independent compensation consultant firm.

"Both the survey results and our client work point to a recognition by corporate leaders that linking pay to performance is absolutely essential – and that they're less than satisfied with their current programs in that regard," says Jim Heim, managing director of Pearl Meyer & Partners.

In fact, 42 percent of respondents plan to raise the performance expectations in 2012. Approximately one in five respondents anticipate modifying performance measures for 2012 in an effort to incorporate a metric that is more closely tied to creation of shareholder value.

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