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Effective C-Level Executive Compensation

OCG provides clients with innovative, performance-based approaches for evaluating, designing, and implementing effective executive C-Level compensation programs.

There are over one million business enterprises in the U.S. having annual revenues of $1,000,000 or more.  In a national population of 300 million, there is naturally considerable competition for the best executive talent, whether for the CEO and C-level officers, or for executives lower within the organization.

OCG is pleased to serve not only large, publicly-traded companies, but also small, closely-held firms. Often, we serve as the executive compensation consultant of choice for our clients’ boards, where we help them to offer their executives the most appropriate combinations of:

  • Salary
  • Annual Incentive
  • Long-term incentive

to spur the company’s long-term success.

Although stock options have witnessed considerable abuse in their usage, we believe that options, carefully deployed, still have a place in our clients’ long-term compensation plan design, as do:

  • Restricted stock
  • Stock appreciation rights
  • Phantom stock
  • Founder’s stock
  • Performance shares
  • Performance units

In addition to compensation programs, OCG provides guidance in:

  • Employment contracts, including “stay packages” in the event of a business turnaround or a bankruptcy proceeding
  • Stock appreciation rights
  • Severance agreements

Get additional insights from our C-Level Executive Compensation resources, including our FAQ.

Here is a brief summary:

1. What is “executive compensation”?

Executive compensation is simply the financial reward given to an executive for his or her services on behalf of his or her organization. It is earned income, because it is paid, usually after the fact, for services rendered to the organization and can be distinguished from unearned, or passive income, resulting from, say, stock dividends or bond interest, which typically require no effort by the recipient.

2. What types of organizations pay executive compensation?

Pretty much any organization which has one or more executives. This means, for example, that an executive working in a large, publicly-traded company; in a small, closely-held family business; in a public charity; or in a private foundation can be the recipient.

(Public charities and private foundations are commonly tax-exempt organizations subject to unique rules on “intermediate sanctions” and “self-dealing,” respectively. Here, we’ll focus instead on the general case of for-profit, or commercial, enterprises.)

3. What does C-Level executive compensation consist of? Overall, executive compensation involves one or more of:

  • Salary
  • Bonus, or annual incentive, and
  • Long-term compensation

Questions?

Contact us and we’ll be glad to discuss your organizations executive compensation concerns in light of its business model.