Executive Compensation Consulting
Like musicians hitting the perfect notes, executive compensation requires the finesse of a fine orchestra, and each instrument needs to perform at its optimal best.
We are experts in executive compensation, performance, environmental, social, and governance consulting. Our professionals have provided innovative compensation solutions to clients for more than 30 years. We are your global experts in linking compensation to talent development, succession, and aligning investor and stakeholder interests.
The Overture of Compensation: Pay and Performance Alignment
Nothing hits a crescendo like compensation headlines in the news. Highly paid doesn’t mean over paid. Farient Advisors wrote the definitive book on pay and performance alignment.
Stakeholder Incentives: The New Baseline for Investors
Investors care about stakeholders and boards and management need to care about them, too. Stakeholders may stand alone or be part of an ensemble. They want to be heard irrespective of where a firm is on its journey to define and reach ESG goals.
High Notes and Low Notes:
Why Is Goal Setting So Hard?
Of all the design features of compensation, goal setting has the most significant impact on alignment. Striking the right chord between measures and goals is essential to motivate executives and be accretive to investors and other stakeholders. Farient Advisors’ experienced perspectives make striking that goal-setting chord less of a challenge.
The Ultimate Movement: Transactions
Whether it’s a merger, acquisition, spin-off, pre- or post-IPO, or SPAC transaction, we’ve been there and done that. We understand how executive compensation, change-in-control provisions, and other dynamics can impact a transaction. And, in fast-paced transactions such as IPOs and SPACs no one wants the newly minted millionaires walking out the door.
Pitch Perfect: Strategic Communications
Farient Advisors knows how to communicate the compensation governance narrative to our clients’ constituencies—including shareholders and other stakeholders, proxy advisors, and the press. Director and say on pay votes—and possibly soon, say on climate—are becoming de facto sounding boards for all-things ESG.
About Farient Advisors
Founded in 2007, Farient Advisors is a leading independent compensation, performance, and governance consultancy dedicated to assisting clients in designing and delivering executive compensation programs that support their business objectives, talent strategy, and value creation platforms, and are consistent with standards of good governance.
Farient Advisors tailors our approach to clients’ specific needs. Our consultants ask pointed questions about business strategy, stakeholder needs, and the overarching strategic goals of our client’s company to help determine the alignment of pay and performance that best serves their interests.
Farient Advisors’ clients run the gamut from the largest publicly traded global companies to private equity firms, family-owned businesses, and private companies. Across industries, we bring independent, reliable, and transparent advice on executive compensation, performance, and environmental, social, and governance (ESG) issues.
Farient Briefings: Judge Rules Musk Comp Plan Unfair
Into the Void: Judge Rules Musk Comp Plan Unfair The reversal by a Delaware court of Elon Musk’s 2018 compensation was almost as stunning as its sums and performance measures, which Musk hit or exceeded. The unprecedented $55.6 billion equity package was challenged by a single investor who reportedly owned…
February 19, 2024 Read more >
Tesla Case: Questions of Process, Independence
Judicial opinions rarely make for good reading. The Delaware Chancery Court decision rescinding Tesla CEO Elon Musk’s $55.6 billion performance-based equity compensation package is an exception. In a 200-page judgment released after the market close on Jan. 30, Chancellor Kathaleen St. Jude McCormick cited Musk’s “extensive ties”…
February 19, 2024 Read more >
Why did Tim Cook’s pay package hold up in court while Elon’s failed?—Fortune
Elon Musk’s pay was voided by a Delaware judge, but Tim Cook’s was held up by a New York court. Why? “What happened with Tim Cook is very common in public companies,” said Marc Hodak, partner at executive compensation consultancy Farient Advisors. “They award performance shares based…
February 9, 2024 Read more >
Connect With Us
Contact us for more information on how we can help your compensation committee reduce complexity, navigate pay and performance alignment, and enhance shareholder and stakeholder communications strategies.
Farient’s recommendations on goal-setting methodology really took us to a new level.
– CEO of publicly traded client
Farient has really helped us raise our game.
– Compensation Committee Chair of Fortune 500 client
Your insights about the industry really helped us think about strategy, not just compensation.
– CEO of privately-held client
Farient is helping us run the best Compensation Committee meetings we’ve ever had.
– Compensation Committee member of publicly-traded client
Farient designed highly impactful incentive compensation arrangements for several of our portfolio companies. They get the job done quickly, thoughtfully and efficiently. Lots of substance and no fluff.
– Managing Director, private equity firm
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Let’s Get Social
Follow Farient Advisors on LinkedIn for our latest insights including new additions to our Tracker Suite ™: The ESG and CEO Pay Trackers, plus our newsy Briefs, which analyze the latest trends in ESG measures, executive compensation, and corporate governance.Visit LinkedIn