Our compensation and benefit experts Deliver on the Promise of helping your company provide compensation packages for your executives that are cost effective, market-driven and appropriate for a company at your stage of development.
The area of executive compensation in a privately held company is very complex. Owners (whether ‘hands on’ or passive investors) want to attract and retain executives while providing an incentive to deliver results, in both a short- and long-term time frame.
Executives may or may not want ownership in the company — but they all want established and measurable goals that will result in a tangible award. Executives who will never be owners of the enterprise desire some type of long-term security that can’t be delivered by tax-qualified retirement programs. The complexities of the tax laws in the executive compensation area and financial statement implications of the programs can make finding a solution that satisfies both the company’s and the executive’s needs difficult.
Our compensation and benefits consulting practice can help employers determine how much executives should be paid as well as designing programs that provide the right incentives for company growth and executive retention.
Executive compensation programs can also be useful to employers in other ways — for example, as a method for a shareholder to liquidate ownership, to support succession planning and to assure that the long-term growth and stability of the company is not sacrificed for short-term gains.
Our approach to assisting a client with executive compensation program design issues is based on the following principles:
- To understand the company’s issues. This includes where the company is in its life cycle, the issues the company may be facing and the obstacles that could arise
- To craft a relevant, viable solution. Some programs may not be appropriate, even though they are used by competitors
- To ensure the solution is cost-effective. The solution must be within budget and with consideration to the company’s fiscal position
- To be transparent to the client. The client must fully understand the financial statement, cash flow and tax implications of the program
- To be with the client every step of the way. Our job is complete when the program is implemented—not merely when it is designed
Our executive compensation and benefits consulting services include:
- Board of Director assistance
- Change of control programs
- Employee communication design
- Equity program design and implementation
- Executive compensation program design and analysis
- Market pricing, including proxy analysis
- Merger and acquisition assistance
- Non-qualified deferred compensation programs
- Short- and long-term incentive program design