Proactive, Contextualized Advice Starts Here
Farient Advisors offers comprehensive compensation, performance, and corporate governance services to public, private, and pre- and post-IPO companies. Our professionals work closely with boards of directors and management to design customized compensation solutions that address today’s challenges while anticipating what may be on the horizon.
Just like you, we hate surprises. Our services are designed to create defensible pay programs that link compensation to performance, set clear goals and performance metrics, and can be explained to investors. In fact, we wrote the book on Pay and Performance Alignment, Fair Pay, Fair Play: Aligning Executive Performance and Pay (Jossey-Bass, 2010). It has become a staple of consulting services. With the expanding role of the compensation committee and its greater focus on environmental, social, and governance (ESG) matters, stakeholder well-being, and potential disclosure changes, our experienced advisors guide management, and the board to perform the basics, avoid blind spots, and plan for what’s coming next.
We Ask Questions, Listen, Collaborate
We work closely with management and the board’s compensation committee to do the right things right. With the responsibilities of the compensation committee continuing to expand, its members are devoting more time and energy to human capital management and environmental, social, and governance issues. How these and other factors affect executive incentive plans is where our team excels. Today, executive compensation plans must balance the interests of all stakeholders. And, in fact, many compensation committees are changing their charters and adopting new names to reflect their additional duties. Examples include:
• Human Resources and Compensation Committee
• Talent Management and Compensation Committee
• Human Capital and Compensation Committee
• Management Development and Compensation Committee
• Human Capital Management Committee
• Human Capital, Diversity and Compensation Committee
Fine-Tune Communication with Stakeholders
We know how to design, build, and tell compensation stories. Farient Advisors understands the intricacies of executive pay and corporate governance performance. Our compensation advisory services help clients develop the right pay programs to align the interests of stakeholders with those of management. There has never been a better time to re-evaluate executive and director compensation to finely tune your story.
Compensation Strategy and Philosophy
Our team develops compensation frameworks that consider each company’s business strategy, values, and culture. Our team has a deep understanding of how executive pay translates into performance. That’s why the pay programs we design for our clients are sensitive to both the strategy of the organization and value creation for shareholders and other stakeholders.
Compensation Committee and Management Advisory Support
Farient Advisors consults with compensation committees or management to maximize their effectiveness within the standards of good governance.
Pay and Performance Alignment
Farient Advisors has always advocated that pay and performance be aligned and disclosed. In fact, at the onset of Dodd-Frank, our CEO published the definitive work on pay and performance alignment. That book, "Fair Pay Fair Play," is relevant today as the compensation of CEOs is linked to ESG goals.
Pay Design and Decision Support
Pay program design translates strategic intent into outcomes. Our team designs pay programs that result in defensible and appropriate decisions and actions, as well as adherence to standards of good governance.
The role of the director continues to expand to include new oversight areas. Good governance begins with the board. Our team works closely with compensation committees to best align the interests of management, shareholders, and other stakeholders, and to strategically communicate pay for performance to all stakeholders.
ESG or stakeholder incentives are becoming part of many executive pay plans. Whether it’s diversity, equity, and inclusion or reaching carbon-neutral goals, our team has built deep expertise in how ESG issues impact client strategies. Our ESG team is embedded in every client engagement. This accelerates an understanding of a client’s ESG positioning and enhances our ability to evaluate ESG performance, competitive positioning, and change processes to determine the right approach.
Transactions are an important mechanism for implementing strategy. We engage early in the process to anticipate the implications of any transaction, including special programs (e.g., retention plans), Section 280G calculations, and ongoing pay strategies—from peer groups to pay levels to program design. We cover all types of transactions.
We provide a variety of compensation and governance-related services that range from executing standard processes to navigating challenging or one-of-a-kind situations. These include but are not limited to board compensation, the facilitation of CEO performance evaluations, and special programs such as retention.
We’re Here for You
Let us know how we can help you think differently about executive compensation and its alignment with performance.