We created customized compensation programs to drive market competitiveness and performance improvement for several key clients:
- The board of directors of a publicly listed technology and chemical company with disparate business lines across unrelated industries engaged us to benchmark the company’s senior executives’ compensation and benefits versus other multi-industry companies.
- A non-profit, accredited educational institution with several hundred management, faculty and support staff located on a main campus and in several major metropolitan areas needed to benchmark their entire employee population as part of the effort to revamp the institution’s pay structure.
- A private equity firm seeking to implement a major cost savings program at a global packaging company with over a thousand domestic employees engaged us to benchmark their entire workforce’s compensation and benefits.
A&M developed a comprehensive interactive analytical financial model (“IAFM”) that includes detailed compensation and benefit benchmark data to each of our clients. The IAFM includes client specific details that define the route taken to benchmark and visualize results.
Our solution included the following:
- We developed an appropriate peer group focused on companies on a similar growth trajectory, taking into account profitability and capital efficiency, as well as specific products and end-markets. We identified a comparable group of executives to benchmark at these peer companies and showcased how their pay structures compare and flexed in different situations.
- We helped the educational institution prepare specific job descriptions for every position including senior management, faculty and staff. Next we benchmarked the compensation and benefit levels to determine appropriate pay ranges and benefits. We also used regression analysis to highlight areas of potential discrimination along with potential explanations of variances.
- We performed a stratified sampling of the packaging company employee population and randomly benchmarked compensation for position titles that were statistically representative of the whole.
- The technology and chemical company now has insight into a more appropriate peer group, allowing the company to more suitably evaluate, compensate and incentivize senior management. Named Executive Officer pay was deemed to be above peep median compensation, but in line with the company’s pay philosophy and this not in need of adjustment.
- Benchmarking results were instrumental in the creation of a new pay policy and structure for the educational institution. This led to a dramatic improvement in recruiting and retaining senior management and faculty. Discrimination testing also validated pay grades and overall pay philosophy.
- Armed with our support, the private equity investor was able to target an amount of over seven figures in annual savings and aggressively focus on areas of excess SG&A spend.