Board of Directors Compensation Consulting
Board of Directors Compensation Consultants from Longnecker & Associates
When was the last time you evaluated the competitiveness of your director compensation program?
In recent years, the media and activist organizations have expanded their attention from scrutinizing CEO pay to include board of director compensation. While these outside forces have encouraged changing regulations involving director pay, the responsibilities and risks associated with directorship in an organization have evolved as well.
As a result of these factors, the compensation strategies that worked in the past may no longer be considered appropriate
Let the experienced consultants at Longnecker & Associates help your organization structure a fair and balanced compensation program that addresses the rapidly changing roles and responsibilities of board members while taking emerging governance concerns into consideration.
Recent court cases like Calma v. Templeton and Espinoza v. Zuckerberg have set the stage for very public scrutiny of director compensation.
In reaction to these cases, it will be vital for directors to diligently review and maintain competitive and defensible compensation levels. This can be achieved through:
- Third-party advice and assistance, including extensive market review
- Implementation of market best practices
- Education on “hot button” topics
- Doing what is right for shareholders and the company
The key factor in mitigating potential director pay lawsuits is preparation. Organizations must be proactive in the face of shifting trends of director pay. The alternative is risking a lawsuit which could cost the company time and money.
Strategic Compensation Solutions
Nearly every company, public and private, has blind spots that they are unaware of concerning board of director compensation. Considering the increased scrutiny and litigation risks, it should be a top priority of every organization to leverage the knowledge and guidance of an independent consultant to avoid such risks.
Turn to Longnecker & Associates to assist your organization by:
- Reviewing, revising or designing independent board of director compensation programs.
- Recommending the amounts and elements of compensation that are market competitive and ensure that pay governance is aligned with shareholder interests.
If you have any questions regarding a board of directors compensation issue, or any other compensation or corporate governance issues, feel free to contact us at 281-378-1350 or by visiting this page.