In our work with public companies, we continue to focus on the importance of aligning management and shareholder expectations. We work closely with our clients to design pay programs to attract, retain and focus executives on the right things at the right time to meet organizational goals. As the saying goes, “What doesn’t get measured doesn’t get done.” We help our clients develop the right financial and non-financial metrics to best align shareholder and executive interests in measurable ways.
For a comprehensive research initiative, “Performance Metrics and Their Link to Value,” Farient evaluated more than 1,800 companies across several industries. Unsurprisingly, performance metrics vary by industry – from asset-intensive industries, which emphasize return on assets, to growth-focused industries, which prioritize return on invested capital. Industry volatility, foreign exchange rates and other variables also play a significant role in determining the veracity of pay and performance alignment.
Farient has been a proponent of aligning pay and performance for more than a decade. To that end, we provide a full array of executive compensation and performance advisory services, including:
- Compensation planning and strategy
- Performance and pay fact-based analysis
- Pay design recommendations and decision support
- Goal setting and performance metrics
- Process support
- Investor communications
- Other services
For more information on the proprietary methodologies we offer our clients, click here.