Compensation Plan Review from Longnecker & Associates
Ineffective and outdated compensation plans can cripple a company’s ability to attract and keep top talent. Our consultants can conduct an independent compensation plan review that highlights opportunities and realigns your offering to fit the current market of your industry.
The challenges involved in updating and managing an executive compensation plan also face increasing scrutiny from shareholders, regulators, proxy advisors, shareholder activists, and activist law firms. With a push for higher transparency and more connection to pay and performance, competing points of view result in a struggle to find the best way to balance the fairness and appeal of an executive compensation plan.
At Longnecker & Associates, we believe that ROI should be the driving factor in annual incentive plan design. The plan’s financing should be based on the achievement of quantitative objectives that update as the business grows. Non-monetary ROI like employee attitude and customer satisfaction also indicate a plan’s success.
Longnecker & Associates will review your organization’s current compensation plan and design a personalized plan tailored to your exact needs.
What is an Executive Compensation Plan Review?
An executive compensation plan review helps your organization to discover the gap between the state of your current plan and where it should be.
The compensation plan review process entails:
- Evaluating the current plan details
- Assessing industry-specific trends and needs
- Determining KPIs and goals
- Creating a tailored plan
- Obtaining stakeholder signoff
- Communicating these changes
How Longnecker & Associates Can Help With Your Compensation Plan Strategy
As a thought leader on compensation, our firm is uniquely positioned to help your organization navigate the ever-evolving landscape of compensation plans.
Our services include:
- Design or recommend the restructuring of annual incentive programs to maximize employee motivation and promote achievement of company goals and objectives.
- Plan features and recommendations with formula vs. discretionary targets, thresholds, maximums, payout timing, vehicles, plan metrics, etc.
- Drafting of communication documents.