Well Designed Compensation Programs
We help Compensation Committees and Management develop an effective executive compensation program. Our services include:
The definition of the market for executive talent determines the reasonableness and potential ranges of pay levels. The definition of the “market” will likely include direct competitors - those companies that compete for customers with similar products and services. It may also include indirect competitors - those companies that compete for management talent. Company size often has a high correlation with total compensation. We have developed multiple approaches that can be useful in selecting peer companies. In the end the objective is to provide defensible and meaningful analysis that supports the compensation opportunity and the selection of performance metrics.
A comprehensive review consists of a series of analyses pertaining to compensation strategy, the market for executive talent, and company performance. Our competitive review may include, but is not limited to, the following elements:
This is an area where we believe we can have a significant impact. Our objective is to align the interests of executives and shareholders in meeting shareholder expectations. We also want to provide a compensation opportunity that recognizes the competitive market for management talent and at reasonable cost to shareholders.
Equity-based plans provide valuable currency for aligning management’s interests with company performance and shareholder value. The “upsizing” of existing plans or the adoption of a new plan may present some complex and challenging issues. Our objective is to assist the committee or board in making well-informed, fact-based decisions that insure that the company has adequate shares to attract and retain talented executives. We offer the following services to help committees and boards make informed decisions on the equity plan: