An executive compensation package should clearly link pay closely to an organization's
short and long-term objectives and reflect the stage of the organization's
development: start-up, threshold, growth, maturity or decline/turnaround.
The difficult balance between paying premium dollars to recruit and retain
top executives and meeting shareholder requirements to pay for performance
can be challenging. The Human Resource Department (THRD) can help you achieve
this delicate balance.
We are experienced in the design of executive compensation
for public companies, private companies and non-profit organizations.
THRD can
help you and your board compensation committee address the trends in executive
compensation:
Demanding shareholders and a cynical public who feel executive
pay is generally extravagant
Greater emphasis on performance
based long-term incentives
Dramatically increased public scrutiny
Increased SEC/IRS
attention
Greater use of employment contracts, stock ownership and
retention guidelines
Increased executive level turnover
Implications of the Sarbanes-Oxley
Act of 2002
We will work with
your company and compensation committee to ensure:
An executive
level pay-for-performance philosophy that fits the company's short and long-term
objectives, and the culture of your organization.
Executive compensation
plans are consistent for all employees.
Employment contracts are thoroughly
written.
Pay levels for top executives are market driven.
Sound plans
to evaluate and measure executive performance.
The pertinent elements
in your executive plan include appropriate consideration of signing bonus,
base pay, equity based compensation, short-term and long-term incentives,
bonuses, deferred compensation, severance and perks.
The plans
will survive public scrutiny.
To discuss your executive compensation situation in confidence, contact
us.
