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.