Executive and Board of Director Compensation:
Linking Executives with Strategy and Shareholders
The marketplace for strong executive talent is always highly competitive. Positioning your executive compensation competitively with the appropriately defined talent market is an important step in attracting and retaining key executives. But, more is needed.
Successful companies determine both how much and how executives are paid. This strengthens organizational alignment, drives desired performance and creates competitive advantage. This is critical to building real shareholder value.
Executive compensation programs should answer the following questions:
- What is the right market to benchmark our company’s executive compensation programs?
- What is the right mix between salary, bonuses, value of equity awards, and special executive benefits and perquisites?
- What measures should we use and how should they best be linked to each element of executive compensation?
- How should the Board of Directors be compensated so they are aligned with both executive plans and shareholder interests?
- What are the trends, regulatory and innovative practices we should be aware and address?
Why Companies Hire Us:
Understanding what other companies are doing in your industry is important, but it is only a first step. It is perhaps more important that your programs become an integral part of your business’s strategy, reinforce your desired values and attract unique executives. Plus, they need to reassure key stakeholders that executives are linked to their long-term interests as well. We can help you understand executive compensation through a new unbiased and clear lens, so that how and how much you compensate executives makes a real difference in your business.
What the Wilson Group offers:
The Wilson Group has worked with boards and executives from many leading companies to address their unique issues. We can help your organization:
- Assess Your Competitiveness Objectively
Assess the competitiveness of the total compensation packages for key executives, including base salaries, short-term incentives, long-term incentives, key benefits and perquisites.
- Design Annual Incentive Plans
Design short-term incentive programs that are linked to annual business plans and performance requirements.
- Design Long-term Incentive Plans
Design long-term incentive, equity and/or equity simulator compensation programs tied to the strategy and long-term market value of the organization.
- Total Compensation Philosophy and Communication
Link all compensation plans to the business planning, review and communication process between the executive team and the shareholders within the framework of customized total compensation philosophy.
- On-going or Annual Review of Executive Compensation
Many public and private companies want an annual review of the total compensation programs for the Board and top executives. We develop these long-term relationships that provide the review, assurance that programs are working as intended, and address annual or long-term improvements to those programs.
We perform these assignments in collaboration with both the board Compensation Committee and senior executives. We retain our objectivity and integrity to address your key questions. We deal with the facts and offer insights and discuss implications so you can make informed decisions. Through our process, we ensure that information and recommendations support the core requirements of the organization, and we achieve critical agreements on what and how to make desired changes. This strengthens the capabilities and commitments for those that have primary responsibility for the organization’s success.
A well-established, highly successful private company wanted to examine the total compensation program of the senior management team. The company was planning a transition to a next generation of leadership and moving from a Board of Advisors to a Board of Directors. The total compensation study utilized a wide variety of compensation surveys and a peer group of public companies. They defined their market by their source for talent rather than their industry. The results identified that certain individuals needed updates to base salaries, that the bonus plan was too conservative and needed to be updated, and the company would need an enhanced long-term incentive plan to attract and retain new leadership talent. The recommendations provided them with a clear road-map on what to address, when and how. The CEO and the Head of the Compensation Committee both felt the report and the important discussion provided a wealth of information in a clear manner, and that they now knew how to support the transition process in which they were engaged.