Case Study: Building Incentives in a Manufacturing Company

Building Incentives in a Manufacturing Company

A global manufacturing company had issues ranging from poor compensation practices to above-median target pay, single-trigger change in control, no burn rate commitment, and way too much discretion—each of these factors contributed to its 37% Say on Pay support.

Farient Advisors was engaged to restart the engines. Our team began with a comprehensive review of the company’s pay practices and pay-for-performance alignment initiatives. The review included reassessing the peer group, analyzing shareholder value and stock trading patterns, and developing alternative approaches to address the underlying issues. We also designed and implemented a shareholder engagement strategy.

The result was more rational pay positioning, pay-for-performance alignment, and governance practices to address retention issues. The alignment of shareholder and management interests around pay design, including measures and goal setting, led to a 96% Say on Pay vote.

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