Transcript
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"I believe that one of the most critical aspects of my work with clients is the interview process that I go through at the beginning of any engagement. During this process typically I'll meet with the CEO, the CFO, other key executives, the chairman of the compensation committee, and then potentially other committee members or even the chairman of the board. |
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This process is critically important for me to understand the business of the organization I'll be working with, so that I can tailor our analysis and our executive compensation program recommendations to that specific organization. |
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In terms of customization, there are number of different areas that we look at in making sure that the programs are tailored to the organizations. We look at the organization's business strategy, its executive talent requirements, the industry of the organization, the size, the ownership status, whether it's for-profit or not-for-profit, and the business life cycle that it's in at the present time. |
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In terms of business strategy, what we really want to understand there is what are the value drivers of that particular organization, so we can then link the value drivers to the executive compensation program and the various metrics that we're measuring within the incentive plans that we're designing for the particular client. |
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We also look at the organization's executive talent requirement, and by that I mean how competitive is the labor market for talent for each of the executive positions, who are they competing with for talent and do we want to focus more on the performance of the executives, retention of the executives or a balance between the two. |
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We want to understand the industry that our client is working within and its positioning both from a business standpoint and from a labor market or a talent standpoint. In terms of the business standpoint, we want to understand if they're a market leader, if they're a niche player, if they're trying to grow their position in the marketplace, or if they already have a pretty dominant position. That helps us to understand how to position their executive compensation program within that industry. |
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To summarize, there are a number of very specific factors that we need to take into consideration so we can tailor our executive compensation program recommendations to the specific organization that we're working with." |
