Setting the Stage
We advise compensation committees on how to maximize their effectiveness within the standards of good governance. It’s all about laying the groundwork for what comes next.
Best Practices Start Here
Farient believes that a key role of compensation is to focus executives on those factors that will have the greatest impact on creating value for stakeholders. We believe compensation programs need to be both tailored to the company’s business strategy and in keeping with best practice norms. Program measures and goals should be transparent and readily explainable to shareholders and other stakeholders.
This service includes:
Diagnosis of issues to determine top strategic priorities.
Incorporation of priority issues into the annual planning calendar and placement of all committee topics in meetings throughout the year. Thorough preparation of meeting agendas with time allocations noted.
A summary of compensation philosophy, peer group, program design, and equity spending on one handy reference sheet.
Provide guidance on committee protocols, e.g., the need for prep meetings, executive sessions, the resources required, and other protocols.
Outline board oversight responsibilities of ESG and determine which ones should be “owned” by the compensation committee.
We’re Here for You
Let us know how we can help you think differently about executive compensation and its alignment with performance.