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Compensation Advisory Partners LLC – A New Resource for Independent Executive Compensation Advice
We formed Compensation Advisory Partners LLC (CAP) to provide clients with the choice of an independent executive compensation consulting firm with a fresh perspective. Our partners have years of experience in executive compensation consulting. Our commitment to our clients is captured in three words: independence, client-focus and expertise.
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What do these words mean for us?
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Independence
- CAP provides objective advice that helps the board of directors fulfill its responsibility to shareholders
- Executive compensation consulting is our core service. We don’t provide other services that contribute to perceived conflicts of interest
- We will take a position and make our point-of-view clear
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Client-focus
- High quality service from experienced professionals
- Personalized, responsive service to a select group of clients where we believe we can have an impact
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Expertise
- Knowledge of compensation models – we know what works and what doesn’t work
- Deep experience in industries that demand specialization, including financial services, insurance, consumer products / services, pharma, retail and telecom
- Understanding of transactions and special situations, including M&A, private equity approaches and reorganizations
- Fact-based advice grounded in data and analytics
- An understanding of the interplay between rewards and risk
By Rose Marie Orens and Kelly Malafis | Mar 1, 2010 | New York, NY
“Excessive risk taking” and “incentive compensation” entered day-to-day parlance with the onset of the financial crisis in 2008. “Excessive executive compensation” had been grabbing headlines since the mid ‘90s, but there was little focus on how a company’s incentive compensation programs might influence enterprise risk taking. Few made the connection that an organization’s appetite for risk could have a dramatic (and potentially adverse) impact on how that organization structured its incentive programs. [More]
By Kelly Malafis and Daniel Laddin | Feb 17, 2010 | New York, NY
2009 was challenging as companies struggled to overcome the difficult economic environment. Now compensation committees are assessing company performance in 2009, making decisions on annual incentive payouts, and determining grants of long-term incentives. Committees are considering how to balance executive rewards with the interests of shareholders, not to mention the governance practices supported by shareholder advocacy groups such as RiskMetrics Group (see page exhibit for RMG’s list of problematic pay practices). [More]
By Margaret Engel | Sep 28, 2009 | New York, NY
In September, the Conference Board Task Force on Executive Compensation issued a report that sets forth guiding principles for executive compensation. The Conference Board’s Task Force convened in March, 2009, during the worst days of the economic crisis. Members were responding to the erosion of public confidence in the business community, sparked by economic crisis and the uproar over excessive and inappropriate incentives. The Conference Board Task Force’s work is an example of how the crisis in financial services has spilled over into other sectors and now impacts the entire business community. [More]
By Margaret Engel | Sep 7, 2009 | New York, NY
The initiatives discussed above in "Independence Standards for Compensation Consultants " will likely result in a higher standard of independence for compensation consultants. None of the proposals, however, attempts to define these standards, leaving that job to the SEC. Compensation Advisory Partners researched current disclosure practices in Fortune 25 companies to understand how companies are addressing this issue in the absence of regulatory guidance. [More]