Do you have an executive on your team who is due for a pay raise? Are you trying to put together a compensation package that will attract a new executive from outside the company? It might be best in these situations to hire some experts who can help you come up with the right numbers or benefits. Here's how an executive compensation consultant can help your company.
Provide an Outside Perspective
If you have an executive already on your team who is due or is asking for more compensation, you will have some decisions to make. You can do your own review of that executive's work or value to the company but you might also be less than fully objective because you could know the person personally as well if they've been with your team for a long time. Hiring a compensation consultant can help provide an outside perspective or a neutral point of view. This will also make the final decision appear fair to any other executives if their compensation is a matter of public record in a publicly traded company.
Knowledge of Industry Trends
An executive compensation expert will be up to date on how much other executives at similar companies to yours are currently earning or how companies are updating compensation packages to remain competitive within the industry. Hiring an outside consultant with expertise in this area will save you time and also help ensure that your package is at a minimum on par with the best practices established by others in your industry.
Knowledge of Regulations
If your firm is a publicly traded company, there might be government regulations or laws that will come into play when updating an executive's compensation. There could be specific guidelines that need to be followed if that compensation will include stock options, for example. An executive compensation expert will have up-to-date knowledge of all applicable regulations for your industry. He or she can ensure that you do everything by the book and that your company will stay on the right side of the law.
Attract and Retain Top Talen
Executive compensation consultants are becoming more in demand as some industries become more competitive. In some cases, you might want to blow a current or potential future executive away with an amazing compensation package if you believe they are the best in the business and you want to either keep them at your company or get them to choose your company over the competition. A compensation expert can help you put together a package that will meet those goals.
For more information, contact an executive compensation consultant near you.