What does compensation consultant mean?
Compensation consultants are experts in the implementation and design of compensation plans, with the goal of creating the proper incentives for employee behavior. They also advise companies on trends in the area of compensation and on the current rates of pay for given job categories.
What does executive compensation include?
According to the Center on Executive Compensation, “Executive pay arrangements typically consist of six distinct compensation components: salary, annual incentives, long-term incentives, benefits, perquisites and severance/change-in-control agreements.”1 See High-Performing Companies Pay Executives Differently.
What is the purpose of executive compensation?
Ultimately, the goal of any executive compensation program should be to incentivize senior executives to enhance company performance relative to prior years and relative to its competitors for the benefit of all shareholders.
How do I choose a compensation consultant?
Clients and compensation committees should look for the following from their compensation consultants:
- Desire for a direct link to the client. …
- Opinions without conflicts of interest. …
- Transfer of knowledge. …
- Strong governance knowledge. …
- Conduct an executive session. …
- Provide expertise with integrity.
How are consultants compensated?
A consultant working as a freelancer or independent contractor typically offers several payment options, including payment by the hour, by project or on retainer. Some clients prefer to be billed by the hour. Others prefer paying by project, viewing it, perhaps, as a way to prevent consultants from padding hours.
Who are the major compensation consulting companies?
Top 7 Independent Executive Compensation Consulting Firms
- Compensation Advisory Partners.
- Frederic W. Cook.
- Pay Governance.
- Pearl Meyer & Partners.
- Semler Brossy.
- Sheffield Barry.