Ensuring executive remuneration services

Ensuring executive remuneration services

EXECUTIVE REMUNERATION

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How Mercer can help you

Mercer's executive remuneration consultants help organisations address critical business issues, such as: 

 

  • Does current executive pay reflect and stimulate business performance?
  • Are executive remuneration processes above reproach and do processes adhere to governance best practices?
  • Are costs and risks managed appropriately?
  • How can executive remuneration programmes support changing business and human capital strategies?
  • Are current executive rewards aligned with talent management programmes to ensure leadership effectiveness?

Mercer’s executive remuneration framework

Our framework considers the business, performance, regulatory and governance drivers of executive remuneration design. 

 

 

Remuneration

 

  • Executive pay and benefits, set relative to external and internal considerations

  • Pay design aligned with business strategy

  • Severance, reasonable to achieve purpose

  • Employment terms, balance individual, company and shareholder interests

Performance

 

  • Performance measurement framework, tailored to strategy and value drivers

  • Performance targets, demonstrably link pay with performance

  • Pay outcomes, commensurate with performance

 

Governance

 

  • Fact-based decisions and sound governance process

  • Compliance

  • Shareholder communications

  • Disclosure and transparency

 

 Talent

 

  • Leadership development

  • Succession planning for key roles

  • Differentiation of critical talent

  • Attraction and retention of executives

  • Managing executive talent in global environment

Our services

Mercer works closely with senior management and compensation committees of the board of directors to advise on executive remuneration design and governance. Our services include: 

 

 Executive remuneration strategy, design and implementation

  • Formulation of executive remuneration philosophy and policy
  • Peer group selection using industry, financial and capital market screening criteria
  • Incentive plan design and implementation, including short- and long-term components, cash and equity, with particular expertise in selection of appropriate performance measures and target-setting
  • Share-based compensation: design, cost valuation and implementation
  • Defining executive employment terms including severance and change-in-control provisions
  • Ensuring competitive total executive remuneration programmes relative to market practices

 

 Governance advice

  • Development and articulation of remuneration committee strategy to serve as reference point for pay decisions
  • Alignment of remuneration committee processes with corporate governance norms
  • Preparation and review of key responsibilities, charter and role matrix
  • Preparation of annual and multi-year calendars
  • Preparation and design of templates for data collection and information presentation
  • Advice on best practices for effective work processes and self-evaluation
  • Remuneration committee training

 

 Corporate transaction support

  • Due diligence support for corporate transactions including listings, mergers and acquisitions, divestitures and de-listings, and advise on required redesign of remuneration programmes
  • Design of one-off remuneration plans, i.e. retention programmes
  • Design of remuneration policy and strategy in the new organisation

 

 Executive remuneration briefings

  • Updates on legislative and regulatory developments and their implications
  • Updates on global market trends in executive remuneration and related corporate governance implications
  • Updates on evolving best practices

 

 

Mercer has expanded its executive remuneration capabilities in Europe and the Middle East, based on: 

 

  • best-fit consulting advice through rigorous approaches and consistent analytical methodologies
  • thought leadership and regular updates on emerging trends, best practices and regulatory developments
  • leading data and information resources available in over 20 markets in Europe and on a pan-European basis for various industry sectors
  • a range of proprietary tools including International Position Evaluation (IPE), PayMonitor™ online survey tool and Performance Sensitivity Analysis®

 


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