Executive Compensation Plan Review & Governance

The alignment between compensation and company performance, making important compensation award decisions, and the retention of Senior Executives are essential responsibilities of Compensation Committees (Board of Directors) in public and many private real estate companies. Compensation governance, whether mandated by regulatory bodies or as directed by owners/shareholders, requires a disciplined approach to: establishing an appropriate peer group; defining the proper compensation benchmark; and evaluating performance and determining compensation awards.

On an ongoing basis, compensation governance embodies both insight and oversight of issues related to performance metrics, absolute and relative performance results, the correlation of performance results with compensation, and the management of the many issues related to annual and/or long-term incentive plan design.

Compensation governance is increasingly comprehensive, involving: motivating and retaining employees; setting high achievement standards; providing consistent financial opportunity annually and long-term; alignment with the goals of the company and its shareholders; and allowing for flexibility and discretion in a rapidly changing business and regulatory environment.

CEL’s creative, insightful and hands-on experience support Compensation Committees and Boards of Directors in ensuring compliance and achieving consensus among leadership/owners.

Corporate operating issues and changes generate needs:
  • SEC and other regulatory mandates and requirements.
  • Independence in compensation advisory support.
  • Clear definition of the relationship of compensation and performance over time.
  • Integrating compensation philosophy, strategy, plan design, performance measurement and incentive opportunity.
  • Annual market review of executive compensation levels and issues.
  • Clarity in presentation of executive compensation in public documents (Proxy/CD&A).
  • Response to Say-on-Pay votes by shareholders.
CEL offers independent advice, fulfilled by:
  • The industry’s largest and most comprehensive compensation database.
  • A breadth of experience and knowledge in executive compensation analysis and program development.
  • Experience in preparing and communicating compensation philosophy and strategy.
  • Successful recommendations on incentive program design and plan development.
  • Complete Board of Director and Compensation Committee experience and insight.
  • Implementation and transition of new executive incentive plans.
CEL adds value from insight and experience for decisions:
  • Integrating company compensation philosophy and strategy into plan design.
  • Review and recommendations for incentive design, performance metrics and award criteria.
  • Language for Proxy statements and CD & A presentation.
  • Responding to Shareholder concerns and Say-on-Pay responses.
  • Annual analysis and reporting for Executive Compensation Review.
  • Counsel and recommendations to Compensation Committees and Boards on important and often complex compensation issues.