Building an Agile Executive Compensation Infrastructure

• Eastern Eye Staff
• 28 October, 2020

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By: Eastern Eye Staff

Crafting a nimble rewards infrastructure is one of the best moves you can make in today’s uncertain environment. Doing so will allow you to lure, retain and incentivize corporate talent that can flourish amid all manner of disruption. To create such a program, you need executive compensation consultants who have deep roots and expertise in rewards, HR, and data and analytics. To that end, here’s what you need to know about building an agile executive compensation infrastructure.

What is Executive Compensation?

Also called executive pay, these are remuneration packages put together for companies’ senior managers, business leaders and executive-level employees. Such packages include salaries, benefits, incentives, and perks.

Why is it Important to Get Compensation Right?

Because these are the folks who call the shots – establish strategy and otherwise make decisions – it’s crucial that senior management and exec-level types are “good” with their overall compensation package. These leaders need to be motivated, and the right compensation will do it.

What are the Parts of Executive Pay?

Your typical exec pay package will include salary, short- and long-term incentives, health insurance, severance package, and “perks” such as take-home vehicles, lunch allowances, use of the company plane, and leisure activities such as golf on work time.

Why is Compensation Program Integration Important?

Now we’re into the nuts and bolts. If you want an agile rewards infrastructure — one that will help with recruitment, retention, and motivation – you must integrate financial with environmental, social, and corporate governance (ESG), and ESG causes. That’s the optimal way to do it. But you do need help pulling it off.

Can Mercer Help?

It totally can, because it has the required executive compensation experience and expertise that we mentioned up top,plus a dedicated global compensation consulting team that services clients across all industry sectors. The company’s expertise is steeped in industry and market practices and programs are tailored for your organization. Oh, and no worries about staying abreast of regulatory issues since Mercer has on board a team of attorneys and governance experts.

How Can Mercer Help?

Simply put, the company can help you improve performance, efficiency, and risk management. Mercer can also help you put together a cash and equity pay program, as well as deal with the burgeoning confluence of legislation,regulationand stakeholder requisites.

More specifically, Mercer can use its consulting teams – plus its extensive database – to help you form and put in place your exec pay program.

Such programs can:

• Allow you to better lure, keep and motivate top exec talent
• Ensure that pay is commensurate with your company’s strategies and what other, comparable organizations are offering
• Make sure you gain the value in ownership proceedings
• Ensure that you are, and will be, in compliance with requirements and guidelines including legislative, regulatory and shareholder
• In addition to transparency, provide you with the ability to purposefully tailor your compensation program.

What’s Mercer’s Strategy?

With its approach, the company features collaborative efforts and disparate viewpoints, an international reach of more than 130 countries and objective decision-making that’s based on evidence.

As you can see, building an agile executive compensation infrastructure is more than a notion. In fact, it’s impossible to do it yourself. You do need the help of a consultant with deep roots and expertise and Mercer fits the bill.

However way you build it, you must, because in today’s uncertain world, you need the agility to pivot on a dime to be competitive in business today.