Incentives & Rewards

Private companies are increasingly adopting public company governance practices such as using formal Compensation Committees consisting of internal or external Board members.  Unlike publicly traded companies where a Compensation Committee is a requirement, private companies establish formal Compensation Committees for reasons such as the desire...

By Bertha Masuda Deciding on individual bonus awards is an important exercise to ensure pay for performance.  However, many companies struggle with how to use discretion in finalizing bonus awards.  In a recent Vivient survey of private companies, almost 60% of companies rated the level of...

By Bonnie Schindler Vivient Consulting analyzed the CEO pay for publicly traded Southern California middle-market companies ranging from $50 million to $1 billion in revenue.  Based on the review of 2014 proxy data, median total direct compensation (salary plus annual incentive plus long-term incentives) is approximately...

 By Jeff McCutcheon  While perfectly aligned with investors in the short term, “TSR programs may diminish accountability for strategy by rewarding for events unrelated to changes in long-term franchise value.” Paying for performance is assumed to be the objective of most pay plans. A quick read of a handful of proxy statements will likely find the phrase prominently used. The Dodd-Frank act...

By Bonnie Schindler Private, for-profit companies in the United States rely heavily on cash incentives to motivate and retain executives and employees, according to the recently released 2013 Vivient Consulting and WorldatWork “Incentive Pay Practices Survey: Privately Held Companies”survey of private-company incentive-compensation plans. This survey was conducted...