Our Insights

Executive SERPs

The use of a performance-based alternative using RSUs has (i) greater alignment with stock performance/shareholder return, (ii) considerably lower accounting cost, and (iii) the potential for upside. In many cases, this alternative will provide a more shareholder friendly way to offer supplemental retirement benefits to executives. Read the entire article (PDF) written by Seymour Burchman and Blair Jones. Read more

Getting Post-M&A Executive Compensation Right

The success of a merger or acquisition transaction rests in large part on the strength and accuracy of the pre-M&A legwork. Executive compensation helps signal what will be important in the new organization and lay some groundwork of how to get there. Successful design and execution of a post-transaction compensation program requires a holistic design approach. Read more

Executive Compensation as a Support for a Growth Strategy

Compensation can be critical to building and sustaining motivation and commitment, as well as ensuring the required talent is available and focusing in the right direction. Compensation can help a company attract the right talent to the key roles responsible for driving top-line growth. In addition, with the right leadership in place, incentive plan design can reinforce the growth strategies through performance measures and goals that influence corporate and/or business unit top-line growth. Read more

Follow With Caution

Performance-based compensation for a company’s directors can threaten board objectivity and create possible conflicts of interest. Yet with the right measures and goals, a company can avoid sub-optimization and keep directors aligned with shareholder interests. The best solution may lie in significant equity ownership tied to board tenure. Read more

A Partnership Approach to Executive Compensation

The new governance environment has changed the dynamics between management and compensation committee members. An optimal partnership between these two parties can improve the business impact of a company’s executive compensation program. Such a partnership can also reassure both parties that the program’s objectives and implementation are as unassailable as possible in the eyes of the shareholders and the outside world. In this article, we outline five steps that create an optimum approach to management/committee collaboration. Read more

Four Tests for Executive Compensation

Compensation committees are bombarded with so much information these days, they need some analytics to make sense of it all. Here we explore four tests that will help them understand the elements of their executive compensation program and how they work together. Read more

Strategic Work Valuation: Compensating the Right Executives the Right Way

Doing the right thing in compensating executives is trickier than just following what the market pays; one must consider what’s right for the company. Strategic work valuation balances factors relating to both the external market and the internal business strategy to help companies better align their talent and business strategies and focus the compensation spend on positions that have the greatest impact on business results. Read the entire article (PDF) written by Blair Jones. Read more

Structuring ’Unassailable‘ Executive Compensation Programs

When it comes to executive compensation plans, so many companies these days have taken the approach of “following the leader,” thinking it will keep them safely under the radar. Unfortunately, such thinking can lead to a lost opportunity. We have developed three tactics to make programs as unassailable as possible. Read the entire article (PDF) written by Blair Jones. Read more