Executive Compensation Consulting
Are you concerned about outdated executive compensation solutions and how they may impact the financial health of your business in the short and long term?
Lions Financial provides comprehensive executive compensation consulting services to business owners, executives, and private equity firms. Our focus is on setting up executive compensation plans, specifically emphasizing financial solutions, insurance, and retirement benefits that must be included. We also provide consulting services for enterprise risk management components for those needing executive compensation review. Protect your business’s financial health and achieve business success with our expert team and the four-step SIRE process.
Frequently Asked Questions
Executive compensation is a structured pay package designed to create alignment between executive pay and shareholder benefits. It is usually based on the company’s performance. Executive compensation plans need to be carefully reviewed and remade to achieve a healthier balance between short- and long-term business goals. Outdated executive compensation solutions can lead to costly, long-lasting problems.
Our services are designed for business owners looking to set up their plans, CFOs, COOs, heads of HR, private equity firms wanting to audit their portfolio companies, companies going public, and companies going through mergers and acquisitions that need support restructuring all the executive compensation.
Executive compensation solutions should include a base salary, performance-based annual and long-term incentives, benefits, executive perquisites, and contingent payments. Additionally, aspects like the alignment of EBITDA attained, productivity issues of business, and generational cohort in the company should be considered when designing the unique compensation plan.
Services often include benchmarking studies to compare compensation levels with peer companies, structuring and valuation of various forms of compensation like stock options, reviewing employment contracts, and advising on performance metrics and targets. Services could include preparing for “say-on-pay” shareholder votes, assessing risk in compensation plans, and ensuring regulatory compliance.
As consultants we review and advise on executive employment agreements, severance packages, and change-of-control provisions while harmonizing compensation structures between the merging companies, which can be crucial for a smooth integration.
Stock options and other equity-based incentives are designed to align the interests of the CEO with those of shareholders. When the company’s stock price goes up, the value of stock options and equity awards also increases, which can result in substantial financial gain for the CEO. This theoretically incentivizes the CEO to make decisions that will increase shareholder value over the long term.
Four-Step SIRE© Process
A closed-loop, value-focused, four-step SIRE© work-process for each of our services:
Step 2: Insight
We analyze the client's business, market research, and industry dynamics to pinpoint the competencies, resources for optimal solutions and risk management.
Optimize your financial performance – Let's work together to achieve your goals.
Contact Lions Financial today to schedule an initial consultation and learn how we can help you create a better executive compensation strategy and holistic plan for your business.