Client success story – executive compensation study
How organizations compensate and reward employees can already be a challenge to attract and retain top talent, and it becomes more challenging when we start to look at how we compensate our executives. This month’s success story highlights how Organizational Architecture assisted a large not-for-profit organization headquartered in Cleveland, Ohio with an executive compensation study.
Our client wanted us to review their executive compensation program for their five top executives. To kick off the project, we reviewed our client’s current practices and identified the different cash and non-cash compensation components of their programs. From there, we located and analyzed market data to provide current benchmarks for each position.
After our analysis, we provided a detailed data summary of our findings for the executive’s cash compensation and how they currently compared to the market. Our final report also included suggestions on developing short-term incentive plans such as a more structured bonus plan, as well as other forms of compensation that are commonly found in executive compensation programs for similar organizations and industries.
Whether you are developing an executive compensation program or an overall compensation program for your organization, having a formal compensation program provides a simple and effective tool to communicate and engage with your employees and the external labor market about your organization’s compensation philosophy.