Executive Compensation

To realize business goals, a company needs to attract, hire and retain high-quality executive talent. A competitive compensation package may include a variable mix of cash, equity, phantom-equity and insurance benefits. These various components are subject to differing tax treatment by the company and the individual recipient, both as to classification and timing.

We advise companies on designing packages providing after-tax incentives to behaviors that will further business objectives and enhance shareholder value. Our services include assistance in:

• Choosing the proper mix of compensation components (base, bonus, long-term incentives);
• Establishing measurable performance objectives for incentive compensation;
• Rewarding desired behaviors with compensation;
• Properly accounting for incentive plans;
• Properly reporting the tax treatment of incentive plans;
• Selecting the correct form of payment for your business–cash (e.g. SARS or phantom-stock) versus equity (stock or option-based);
• Evaluating insurance-based benefits;
• Implementing retention strategies;
• Effectively communicating the compensation structure;
• Dealing with compensation in relation to corporate transactions;
• Choosing the correct compensation structure for your business entity;
• Supplementing company retirement plans.