The compensation strategy serves as the foundation upon which many executive compensation decisions are made.
A strong underlying compensation strategy and philosophy are key elements used in developing and administering sound executive compensation programs. The strategy also provides a basis for communicating pay practices to shareholders and other stakeholders. Thus, it is imperative to develop and codify this strategy and keep it current.
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We strive to understand our clients' business strategy and culture, desired objectives of the compensation program, and other specific issues that may influence the design and administration of the programs. Once a strategy is developed and approved by the committee, the compensation program design and administration becomes streamlined. All parties then have a clear understanding of the rationale.