Case Study
Birchtree was hired by a very well known, CEO to create an executive compensation program for a developing business. This business was competing on a large, very high security, very complex, contract. To fulfill the contract the company would be leading a multi-company initiative composed of much larger organizations.
The business faced a challenge, how to design an executive compensation system that would pass intense contract review, public scrutiny and yet attract, reward and retain executive staff as the business grew from $25M to $250M in one year.
Birchtree created a specialized comparator group for benchmarking purposes, revised all job descriptions for senior staff and created a five point executive compensation program that provided base salary, short and long term incentives, benefits and perquisites which contributed to the company’s winning and managing the contract.
CEO Comments:
“The executive compensation project was well received by the contract review officers and helped us win this contract… Very well done!”
Of all the challenges leaders face this is one of the most difficult to quantify and one of the most public. There is intense boardroom focus on the design, development and implementation of performance based compensation systems. Poorly designed compensation programs not only affect organizational competitiveness but may become a source of public criticism in the media or on the internet directly affecting customer confidence and satisfaction. In today’s hypercompetitive global marketplace companies must balance emerging workforce trends with well designed pay programs that provide a direct link between business strategy and customer satisfaction.
Birchtree is a trusted, independent, business partner that believes a direct link between business strategy, employee performance and customer satisfaction is one of the best ways to inspire confidence in a compensation system. Using our proprietary data bases, metrics and survey’s we work with you in crafting balanced, fact based, pay for performance compensation programs that can withstand public and board level scrutiny.
But, it’s not just about compensation design. Programs that are not accepted, implemented or valued by managers and employees will not be effective. As a result we design our pay programs with the understanding that they will be implemented in a fast paced business environment by managers and employees who want to be valued for their contribution to the organization.