Essere Associés
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Editorial
The compensation package of executives is one of the main debates concerning the corporate governance of companies. Some practises have shocked public opinion, media and shareholders... rightly. It is indeed unacceptable that the compensation package of executives is disconnected from the performance and the progression of their company.
But the tree should not hide the forest.
The companies adapt and optimize their policies of remuneration to an environment which has metamorphosed in a few years :
- On the one hand, the stakes of the companies changed : globalization, management of change and mergers, acquisitions, divestments, requirements of growth and performance.
- On the other hand, the expectations and constraints towards executives increased : leadership and competitiveness (on a world level), vision and needs for short-term results, weight of the shareholders and the opinion, development of the risk, including on the personal property and resources.
- Finally, in Europe and North America, the companies entered the era of the "ephemeral" executive : the executives find themselves from now on on ejector seats, at the moment when the collective insurance systems are deteriorating (pension and insurance plans, unemployment compensation...).
Therefore the compensation package diversified and became complex :
- Basic remuneration became ONE of the components of the compensation package.
- The levers of remuneration matured; they are multiple, and each one must be relevant and correspond to a particular objective : mastering of the function / key competences of success (basic remuneration), objectives short term / medium term (corresponding bonuses), share of interests of the shareholders (shares or stock options distribution) ...
- The executives are interested in all the components of the compensation package, and in particular in the questions of optimization and protection, which belong to the company AND the individual liability: tax optimization, but also offer "a la carte" (solutions of individual remuneration adapted to their specific needs); protection related to the risks of the personal life (health, assistance, dependence, pension, death), or with the evolutions of the professional life, at the time of the steps of career (recruitment, change of perimeter, mobility, merger, acquisition, takeover, breach of contract, unemployment) or because of the exerted responsibilities in the business operation and management (civil risk or penal risk).
Today, you are invited to read our analyses on :
- The protection of executives : please click here
- The breach of contract : please click here
- The final stage of career and pension scheme : please click here
We draw your attention to the fact that our company has developed an offer for companies, but also for individuals, to serve both companies and their executives.
We look forward to receiving your reflections or your questions. We promise to answer personally and rapidly.
Jean-Claude Sobel