Compensation governance
Scrutiny of executive compensation is intensifying from all quarters. Boards must be able to explain, and sometimes defend, their choices for why they are paying their top management the way they are. The basis for such an explanation is exceptional clarity about your compensation practices, from the framework that governs your decisions and trade-offs to how they are communicated to investors and the broader public.
We bring our extensive experience and research to provide directors with a clear framework for addressing the difficult compensation decisions the board must make. In the context of that framework, we can provide a review, analysis, or critique of existing plan designs, or specific recommendations for improving your firm’s compensation plans. While most compensation consultants benchmark or design compensation plans one piece at a time, we look at and design plans from a comprehensive perspective, with each element being part of a whole motivation and reward system.
We can help you:
Review total value received by management and total compensation costs paid by the company under the full spectrum of company performance Determine the optimal mix of fixed versus variable pay for each executive Determine the effectiveness of variable compensation plans in motivating value-creating behavior Review and recommend policies for awarding, granting, and vesting of long-term incentives, both cash and equity Review and recommend effective investor communications of compensation plans, including CD&A disclosure
Return
