Getting the Most Value from Your Compensation Consultant

By Peter Lupo

Compensation Committees and consultants generally agree on basic good governance practices and overall objectives - but often have very different expectations, different styles or different ideas that can get in the way of achieving the best results for the company.

This article highlights some common pitfalls in the Committee/consultant relationship and suggests approaches to ensuring both sides are on the same page. Among the issues discussed:

• Reporting vs. advocacy - deciding what's right for your committee
• How to know you're getting good strategic advice
• Containing compensation consulting costs without compromising quality
• Deciding between the use of one or two compensation consultants