Establish a relationship between future company performance and marketplace benchmarking.
- We factor in a company’s performance expectations and business strategy. Where do you expect to be in 2 to 4 years?
Construct several relevant snapshots of the marketplace.
- To understand the marketplace, there are several different peer groups. For example: regular industry peer group, general industry, high performing peer group, best practices peer group.
- We supplement the peer group analysis with compensation data from several well-known compensation surveys. This information provides a snapshot of the pay levels for general industry. Surveys have a large number of companies participating, which adds strength to the statistical validity of the information.
- In addition, we add information regarding compensation practices from our best-practices database.
Account for and clearly communicate positions taken by governing bodies.
- Regulatory agencies, such as stock exchanges, SEC, tax and accounting
- ISS, The Conference Board, the Business Roundtable, NACD, TIAA-CREF, etc.
The information we gather is deep and thorough.
- Historical performance comparison of the various peer groups
- Salary, target bonus, actual bonus, value of long-term incentives
- Compensation history and trends to provide a historical perspective
- Pay mix: How compensation is delivered
- Incentive plan designs used by other companies
- Executive ownership (shares and options) and company ownership guidelines
- Dilution and run rates from equity-based compensation
- Executive benefits, including plan design features, and perks
- Change in control approaches and employment contract terms
- Board compensation
- Governance standards related to compensation as enumerated by ISS, etc