EXECUTIVE REMUNERATION AND BENCHMARKING
In executive remuneration and governance, we have strong expertise in advising our clients in designing and implementing new executive pay strategies, as well as setting up suitable pay governance and corporate remuneration committees. Furthermore, we have extensive experience in helping our clients with defining the competitive remuneration level for executives by conducting proper market benchmarks, designing and implementing new base pay structures, short- & long-term incentive plans as well as composing the right benefit packages.
ADVISE ON PAY GOVERNANCE
Organizations are now adopting a higher level of transparency in reporting on executive remuneration to their shareholders. Especially after the EU Shareholders Rights Directive has taken effect and has impacted how listed companies have to disclose details on executive remuneration.
We advise and support our clients in setting up pay policies and reporting formats, compliant to new legislation and good governance standards, structure executive pay governance as well as reviewing the scope of the remuneration committee. As scrutiny on executive pay on overall size of pay (and its details), compared to the general pay level in the company (the CEO pay ratio) is introduced, we are ready to assist our clients in providing better governance on executive pay and not least on external communication of why, of what and how the executive remuneration packages are put together.
We help our clients:
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Review and recommend the scope of their Remuneration Committee
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Plan and transition executive remuneration policies to new standards
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Set up operation and annual meeting schedule for the Remuneration Committee
EXECUTIVE REMUNERATION STRATEGY
A fully integrated reward strategy needs to be competitive, financially sustainable and attractive to all employee groups – while also finding the proper balance of transparency and equality. Setting up a sustainable reward strategy includes several processes, such as defining the company pay philosophy, deciding on a base salary model, designing the desired pay mix including choosing the suitable variable pay plans and benefit programs.
We have extensive experience in designing and implementing broad-based reward strategies. We can help design and produce the needed supporting policies, processes, and governance of the reward strategy.
DESIGN OF EXECUTIVE INCENTIVE PLANS
We have a proven track record in clarifying scope and design of new, long-term incentives programs for executives, as well as implementing these in larger global organizations. We believe that the pay mix for executives, and how the incentive opportunity correlates with company performance in short, median and long-terms, are crucial to understand and include in the LTI design process. Board Remuneration Committees are increasingly looking to ensure that the pay level of their executives is based on sustainable company performance and real value creation to shareholders. We are ready to support our clients in the journey from a request for a new LTI plan - to the program has been implemented and communicated.
PAY FAIRNESS
How to get ahead of the Pay Fairness curve?
Have you asked yourself how to get ahead of the Fair Pay curve to ensure both legal compliances, but more importantly to gain a lead competitive advantage over your competitors?
On April 24th 2023, the new EU Directive on Pay Transparency was adopted by the EU Council. The member states in EU now have 3 years to implement the directive into their own country’s legislation. This means that by June 2026 the new EU Directive on Pay Transparency should have taken effect in all 25 member states in various forms.
The Reward Firm help clients to elevate the Equal Pay and Transparency challenge to another level than just being compliant and competitive in your local labor markets. Not because you have to - but because it is what you wish to do. We have already seen on the US labor market, that applicants are beginning to deselect employers that do not demonstrate a fair and transparent pay practice, and this trend is moving faster than any EU or country legislation. So, time might be limited to get things in order if you want to stay (or get) ahead of the curve.
But how do your company become the preferred employer of choice when applicants are looking for their next career opportunity? Not just because of the attractiveness of the job alone or the size of the paycheck - but because your company show the integrity of being the fair and transparent employer you truly wish to be. Offering the right pay for the job, not because you must, but because you want to.
Taking pay transparency to the highest denominator of fairness with the practice that draws headlines – what some would call ‘an employer with an attitude’.
Contact us for a talk on how you take the double leap on both the legal compliance of the EU Pay Transparency Directive AND harvest the advantages of being the preferred fair employer of choice.
DESIGN OF ORGANIZATIONAL AND JOB STRUCTURES
The Reward Firm have worked with organizational design in various forms across a number of large organizations. We advise our clients in translating their business model and core value streams, into ways of organizing, and consequently how work functions and job leveling can be designed in an effective and flexible way. We have a proven track record of designing job architectures to be used for job leveling, titles, market end internal equity benchmarking, setting up compensation and talent management processes, as well as other functional processes within IT, Finance and Procurement.
DESIGN OF REWARD STRATEGIES
The Reward Firm has a proven track record in designing and implementing companywide total reward strategies, and supporting policies, processes and governance of these. We advise and help our clients, defining the needed business justification for setting up an effective reward governance model, seen from both a financial, a shareholder and a PR perspective - not least to ensure an attractive and competitive employer value proposition.
Setting up a comprehensive and sustainable reward strategy, entails defining the company pay philosophy and general principles for designing the job and title structures, a transparent and effective base salary model, the desired pay mix and potential variable pay plans as well as an affordable and flexible benefit program. We believe that the fully integrated reward strategy should be competitive, financial sustainable and attractive to all employee groups – and at the same time robust towards scrutiny on transparency and equality from all company stakeholders.
ADVISE ON BENEFIT GOVERNANCE
The Reward Firm has worked with developing and implementing governance structures for employee benefits, tools and yearly review processes in large global organizations. An effective global benefit governance ensures companywide optimization of financial risk and liabilities, employer attractiveness in offering relevant and competitive benefits as well as reducing cost and complexity for the employer. We help clients in scoping effective international benefit reviews and how to set up an effective benefits governance involving relevant internal functions as HR, Finance (Risk & Treasury) and Procurement, as well as how to benefit from external brokers.
MARKET INTELLIGENCE AND PAY ANALYSIS
The Reward Firm has extended experience in conducting remuneration benchmarks and pay analysis and communicating results at all levels in the organization. We help clients in scoping the needed benchmark analysis and support the internal company C&B function in conducting these. Or we can conduct complete market benchmark and pay structure analysis on behalf of Company Boards, Executive Management or Group HR functions. We can work with companies own benchmark data or obtain market data from 3. party providers on behalf of clients. Furthermore, we can assist in conducting customized club survey analysis or role specific job pricings on behalf of clients.
