Delivering Tailored Solutions and Compensation Programs
Executive Total Compensation
Our consultants evaluate all aspects of the executive total compensation package: base salary, annual incentives, long-term incentives, benefits and perquisites. This market research provides valuable data for determining the competitiveness of current compensation programs. Using this analysis, we help clients develop a compensation strategy with an end goal of competitive and sound compensation.
Annual Incentive Planning
Our consultants review current incentive programs (or develop new plans) to ensure that incentive pay is performance-based with features that minimize material risk. We design programs that drive performance and reward individuals for achieving desired results. Once the design is approved, we facilitate discussions to establish annual performance goals that support the business strategy.
Board of Director Compensation
Director talent is critical in today’s regulatory environment. We assess all aspects of director compensation including: retainers, board meeting fees, chair fees, committee meeting fees, equity, and benefits. Utilizing these market benchmarks, we work with banks to ensure that compensation aligns directors with shareholder interests and the long-term viability of the bank.
We work with boards and bank management to create succession plans for the CEO, or for the entire management team. This includes having both emergency and planned succession strategies and identifying high potential candidates for key positions. We work with clients to create action plans to develop internal candidates based on an assessment of their strengths and weaknesses. We also advise on retention programs and recruitment strategies.
Plan Document & Employment Agreement Review
We review employment agreements, equity plan documents, and/or executive benefit plan documents to determine how plans compare to the latest industry trends and legislation. We can also draft or revise documents in coordination with legal counsel.
Officer and Staff Compensation
This review utilizes published survey data to assess market competitive levels of base salary and cash compensation for officers, lenders and staff employees. We develop salary structures, pay grades and pay administration policies consistent with an organization’s compensation philosophy.
Long-term Incentive Program
Long-term incentive programs are effective tools for motivating and retaining key talent. A significant portion of compensation in long-term or deferred compensation is viewed favorably by both regulatory bodies and shareholders. Compensation that is realized over several years aligns executive pay with the long-term viability of the company. We design long-term incentive plans that reinforce an organization’s business strategy and provide opportunity for executives to benefit as the company increases shareholder value. Our consultants assist with shareholder proposals as well as stock ownership guidelines for both executives and directors.
Compensation Committee Guidance
We work with Compensation Committees on compensation committee charters and pay philosophies, Board and CEO evaluations and the feedback process. Our consultants conduct educational sessions to update directors on executive compensation trends and changing legislative and regulatory requirements.
Proxy reporting standards continue to evolve and our consultants stay abreast of new reporting requirements to ensure your statements are clear, descriptive and compliant. Recent “Say on Pay” votes demonstrate that shareholders are actively reviewing proxy statements; it is critical to effectively explain what and why compensation decisions were made during the proxy year. Our consultants serve as a resource in the process of preparing your proxy and reviewing /drafting the Compensation Discussion and Analysis (CD&A).