Challenge: After five very successful years, the CEO’s employment agreement was coming up for renewal. The CEO asked us to provide him with information that he could use during his negotiation with the owners and the Board.
Solution Deployed: Rather than provide the CEO with salary information, we recommended engaging the Board in a more formal negotiation process. Using market data as a driver, we consulted with both the Board and the CEO to ensure agreement and understanding of the compensation philosophy and the benchmarking process used.
Business Value Delivered: Based on the analysis and discussions with each side of the negotiation, a revised employment agreement was quickly and painlessly reached. Both sides felt they had an opportunity to share their perspectives and were pleased with the outcome.
Client Industry: Aerospace
Project Type: CEO Compensation, Compensation Philosophy, Consultation, Negotiation
Business Structure: For-Profit, Privately Held