McLagan Consultants:

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Executive Compensation Design

Our consultants work with management and compensation committees to provide direction in benchmarking pay and performance for strategic executive and director compensation programs. We specialize by client type, such as global, national, or U.S. regional to address our clients’ unique needs.

We Partner With Clients

Employee Rewards | Refining Your Approach to Market Data
We form strong relationships with our clients to truly understand the challenges that they face.

By maintaining an ongoing dialogue with clients throughout the year and proactively providing updates on industry changes, we provide effective solutions to issues that inevitably arise throughout the year.

Our team works with executives and boards of directors to create rewards programs that are competitive in today’s market for top leadership. We provide recommendations that are informed by real-time market intelligence, a wealth of valuation, tax and accounting expertise, and a firm-wide commitment to tracking compensation-related regulatory developments in the financial services industry. We have a dedicated team focused on helping clients understand and respond to the policies and influence of Institutional Shareholder Services (ISS) and Glass Lewis.

We work with clients to:

  • Benchmark Compensation to Customized Peer Groups
  • Define Holistic Compensation Strategies Tied to Business Goals
  • Design Employee Agreements and Contracts
  • Tie Executive Executive and Director Pay to Performance
  • Conduct Risk Reviews

Our skilled team also advises executives and boards on regulatory issues impacting compensation and related policies. To learn more about our specialization in regulatory and risk advisory, please click here.

 

Clients Across the Life Cycle

Employee Rewards | Refining Your Approach to Market Data

We have one of the largest and most extensive proprietary databases of executive level positions globally. We provide firms with market benchmarks for their critical roles and cover base salary, allowances, and short- and long-term incentives compensation data. Our technical analytics, tailored to reflect the true market in which your firm competes for both talent and business, enable you to evaluate performance with reward. Our team works with financial services firms across different stages of their life cycle.

  • Distressed Companies: Operating under capital, liquidity, other accounting, or a regulatory situation brings special and urgent concerns regarding governance, strategy, talent assessment, and effective pay practices. Identifying what works, what needs to be discarded, and implementing change under dynamic circumstances requires proven experience.
  • Private Companies: Incentives for private companies should consider liquidity constraints and potential capital transactions / ownership transfer that may occur in the future. In addition to tax and accounting considerations and market conditions, a private ownership structure will aff ect the choice of long-term incentive vehicles, vesting terms, and appropriate levels of ownership dilution.
  • Publicly Traded Companies: For both directors and management teams, ensuring that reward programs meet company objectives and reflect current regulatory guidance and best practices is key. Firms will need to ensure that their compensation plans, policies, and procedures will stand up to the scrutiny of public shareholders.
  • Transitioning Companies: The IPO or sale is a milestone event for a company’s compensation structure. It brings liquidity to equity awards and can present challenges in the areas of retention and motivation as significant paper wealth is converted to real, accessible value. Anticipation of this event and ensuring employee engagement before, during, and after the IPO or sale begins well in advance of the transaction.

 

Board and Committee Advisory

Employee Rewards | Refining Your Approach to Market Data

Our consultants are trusted advisors to compensation and remuneration committees, providing a complete range of board committee advisory services. We back all of our recommendations with our extensive global proprietary database of compensation data combined with the knowledge and experience to interpret the data. We understand that data influences decision making, but does not govern it, which gives board committees counsel that is tailored to each firm's unique profile.

 

Senior Reward Toolkit

Employee Rewards | Refining Your Approach to Market Data

The Senior Reward Toolkit was created in response to our clients’ increased demands for an end-to-end solution for supporting pay decisions for senior management. With a target of 150 top firms across roughly 75 key roles, study participants have the most comprehensive and innovative executive compensation data set ever assembled for the financial services industry. With a host of fresh perspectives, extensive data scoping by firm type, size and employee location, and CEO regression analysis, this study is much more than a generic compensation survey.

We provide data on the C-Suite, heads of front office, heads of infrastructure roles, and both region and country heads.

In addition to the compensation data we provide on executives, we provide Market Practice Studies that include qualitative sections on senior reward areas, including:

  • Change in Control Provisions / Severance
  • Long-Term Award Structures
  • Benefits / Perquisites

To learn more about McLagan Market Practice Studies, please click here.