|
Design More Effective Executive Compensation
With investors pushing back on stock option grants and accounting rule changes taking effect, the world of equity incentives is changing rapidly. We can help you develop new ways to engage and motivate your leaders.
Watson Wyatt helps you respond to new demands for compensation packages that are well thought out, current and competitive. Supported by industry-leading research, our executive compensation experts work closely with you to develop incentive plans that balance cost and performance.
One example: For executives, equity-based compensation continues to decline with a 16 percent decrease in the number of stock options awarded to CEOs in 2005, following a 7 percent decrease in 2004. In place of options, companies are favoring other long-term vehicles, such as performance-based incentives and restricted stock awards, to keep executives motivated and excited.
As companies look at other ways of retaining and motivating executives, our innovative approaches to executive compensation uniquely position us to help you face the challenge.
Our experienced consultants can also review your plan designs for accounting implications. We have developed our Present Economic Value model — a binomial, lattice-based model — to more accurately value stock options from a cost perspective. We can also analyze the assumptions used for expense calculations and consider the impact of different models used to calculate the fair value of stock options. The results? A better reflection of true costs.
Our services include:
- Total compensation assessment
- Annual and long-term incentive plan design
- Financial performance modeling
- Compensation program assessment and development for new hires
- Board remuneration
- Pre- and post-acquisition program design
- Corporate governance
- Compensation Discussion and Analysis Scorecard
| 
