Compensation Plan Review & Design

One of the most important decisions a company can make is the nature and structure of its incentive compensation plans. It can be challenging to design and implement effective plans which motivate and retain employees, set high achievement standards, provide appropriate market levels of financial opportunity, align with the goals of the company and its shareholders, and allow for flexibility and discretion in a rapidly changing business environment.

One of CEL’s most requested and valued services for private and public real estate companies is our creative and insightful support through the process of designing, developing, adopting and implementing new incentive programs.

The process includes examination of alternatives, selecting performance criteria, calibrating expectations to market compensation, providing for internal equity, protecting both employee and investor/owner interests, supporting regulatory and legal compliance, achieving consensus among leadership/owners, implementing an effective program of communication, and establishing effective administration. Compensation plan development can be a daunting process, and is best accomplished with the assistance of CEL experts.

Corporate operating issues and changes generate needs:
  • Retention and competitive market conditions.
  • Ineffective or outdated incentive programs.
  • Stronger alignment of short-term and/or long-term goals with management results.
  • Sustaining performance through challenging periods.
  • Growth in assets/employees and/or need for greater structure in incentive programs.
  • Aligning performance assessment and compensation.
  • Clarity in employee understanding of evaluation procedures and measures.
CEL offers independent advice, fulfilled by:
  • An understanding of the range of incentive plan alternatives.
  • Knowledge of the advantages and disadvantages of alternative incentive programs.
  • Experience in establishing comprehensive performance criteria/metrics.
  • Understanding of risk vs. reward.
  • Delineation of overall structure of corporate, departmental, functional, team and individual goals.
  • Balancing award structure with market conditions and strategy – mixing cash, equity and timing.
  • Knowledge of the clear distinctions of annual vs. long-term incentive plans.
CEL adds value from insight and experience for decisions:
  • Integrating company compensation philosophy and strategy into plan design.
  • Review and analysis of current company incentive structure.
  • Matching company strategy and operations to appropriate incentive programs.
  • Recommendations for incentive design, performance metrics and award criteria.
  • Developing and review Plan documents.
  • Compensation communication plans and materials.
  • Incentive program implementation plan and process support.