Reviewing executive rewards
Are your executive rewards arrangements still in line with your business strategy and stakeholder interests? When was the last time you checked? A Hay Group review can help you evaluate the effectiveness of your rewards program and assess whether it is meeting the desired goals.
Executive rewards are often a significant cost for the business. But they’re a cost that organizations are willing to pay as long as they represent good value – by helping the organization to attract, retain and motivate the leaders it needs to get the performance it wants.
To make sure that rewards programs are doing the right thing, businesses should regularly review their schemes: are they aligned to the company direction? Are they rewarding the right behaviors? Are the costs acceptable to key stakeholders? And are they meeting their underlying goals?
Why Hay Group?
With unparalleled experience of, and insight into, rewards programs in organizations across the world, Hay Group is ideally equipped to review and re-evaluate remuneration strategy. Our reviews help you to assess whether:
- your executive reward strategy remains appropriate
- the executive reward practice is still in line with the strategy.
Based on these fundamental issues, we can then work with you to help you make appropriate remuneration decisions.
Hay Group’s approach
Hay Group works closely with key decision makers, typically board members and top executive management as well as senior finance and HR professionals, to understand your current approach to reward – and your overall business strategy and needs.
We then look at how these match up and whether the executive reward strategy remains appropriate, covering the relative importance of job/role, market, internal equity, individual and business performance and personal qualities (such as potential), the balance between fixed and variable rewards and between short-term and long-term rewards.
We provide a clear picture of competitive executive remuneration levels and practices in the relevant markets, with interpretation of and insight into the market data. We explain the impact of relevant corporate governance codes, listing rules and investor guidelines.
We help clients decide on:
- whether current approaches to executive reward arrangements, such as executive job grades or bands, remain appropriate
- the relevant peer group comparisons to be used and appropriate positioning against those benchmarks
- the balance between the major elements of the reward package including the size and gearing of short- and long-term incentive opportunities
- the types and levels of benefits and perquisites to be provided.
We can then help with the design, implementation and communication of revised executive reward arrangements.
Hay Group in action
Hay Group's newsletter, The Executive Edition, covers all aspects of executive reward strategies and implementation.
Find out more
If it’s time to review your executive reward program, please contact us.