Executive compensation is a critical and complex aspect of an organization’s overall compensation strategy. At Compensation Works, we specialize in designing competitive executive compensation packages that align with business objectives and comply with regulatory requirements.
Our approach to executive compensation involves the following:
- Understanding the Business Strategy: We start by deeply understanding the organization’s strategic objectives and how its executive roles contribute to these objectives.
- Benchmarking: We use market data to compare the organization’s executive compensation packages with similar companies in their industry or sector. This ensures that the compensation is competitive and can attract and retain top executive talent.
- Designing the Compensation Package: We create a comprehensive compensation package based on the business strategy and benchmarking data. This typically includes base salary, short-term and long-term incentives, and benefits. We ensure that a significant portion of the compensation is tied to company performance to align the executives’ interests with those of the company.
- Compliance: Executive compensation is heavily regulated, and we ensure that all plans we design comply with relevant laws and regulations. This includes IRS regulations related to “reasonable compensation” and public company regulations regarding disclosure and shareholder approval of executive pay.
- Communication and Governance: We help organizations communicate their executive compensation strategy effectively to various stakeholders, including executives, the board of directors, and shareholders. We also advise on governance practices to ensure the ongoing effectiveness and compliance of the executive compensation plan.
Our expertise in executive compensation allows us to design programs that attract, retain, and motivate top executive talent while aligning with the organization’s strategic goals.