Executive Compensation Consulting
Executive Compensation Consulting from Longnecker & Associates
The challenges involved in setting and managing executive pay have never been more formidable. Today, executive pay routinely faces massive scrutiny. As a result, companies are faced with the daunting prospect of having to satisfy shareholders, regulators, and executives with their decisions on compensation.
Let Longnecker & Associates use our expertise to design a compensation plan tailored to your organization’s exact needs. Contact us today for more information on our Executive Compensation Consulting services.
What is Executive Compensation?
Executive Compensation is a term that encompasses the financial compensation awarded to an organization’s executives. Executive Compensation packages are designed with the intent of incentivizing the executive team as well as enabling an organization’s ability to attract, motivate and retain key executive talent.
Nearly every employee, shareholder, and board member has his or her own differing opinion on how to best use formulas and discretion in determining executive compensation. Also, the amount of attention focused on compensation has increased dramatically in recent years from regulators at the Securities and Exchange Commission, proxy advisors like Institutional Shareholder Services, shareholder activists, and activist law firms. These groups continue to push for higher transparency, more connection to pay and performance, and more formulas in company incentive programs.
At the same time, shareholders have elected compensation committees and boards to determine fair and reasonable compensation in light of many factors, including market competitive costs, complexity and size of the organization, tenure of the executive, and performance. All these competing points of view have resulted in a power struggle between company boards and institutional advisors over the best way to balance the fairness and reasonableness of executive compensation.
How Longnecker & Associates can help you
Our firm is uniquely positioned to help your organization navigate the ever-evolving landscape of executive compensation. With over 20 years of experience, our team will help provide honest, fresh, and effective solutions for all compensation issues.
When you work with us, we will:
- Assess the market and develop customized peer company groups for compensation comparability.
- Conduct independent, third-party assessment of the reasonableness and market competitiveness of compensation components and levels for executives in public, private and not-for-profit organizations.
- Provide an assessment of terms and provisions of executive employment agreements.
- Conduct analysis of change-in-control terms and design of competitive structures.
- Determine the appropriateness of compensation provided over an executive’s tenure in relation to the market and performance.
- Design executive retirement compensation plans and succession plans to ensure an optimally smooth transition.
- Perform stock ownership requirement analysis and design.