CompStrategy Logo

Executive Compensation

Executive compensation must promote -simultaneously and in a balanced way- the interest in improving the annual result, the execution of the budget and the business plan, but also the creation of value over time, ensuring a sustainable and ambitious future.

This is achieved by designing not only annual incentive schemes, but also by implementing Long Term Incentives that extend the interest horizon of the executives and allow them to have similar experiences to those of the shareholder.

CompStrategy can help define executive compensation policies, including the definition of competitive levels and monitoring guidelines, as well as short- and long-term incentive packages oriented to value creation, with the objective of achieving an adequate competitive advantage.

Typically, our services in Executive Compensation include the following elements:

CompStrategy can help with:

In order to size an effective Executive Compensation Plan it is necessary to consider the size of the company including the levels of invoicing, headcount and the risk of the sector. Likewise, it is necessary to identify actions that add value considering financial goals, associated indicators such as FCF, EVA, EBITDA and others, as well as customer satisfaction and talent retention.

It is key to effectively communicate the compensation scheme. Designs should include "safety features" to ensure that payment is made only if the process is followed and the desired shareholder results are achieved. It may be appropriate to set caps that take into account external forces that may trigger the value of the compensation for non-management reasons, and mechanisms that recognize extraordinary management even in times of crisis.

These are some of our Areas of Expertise: