On today’s episode, we’re joined by Andrew McElheran, Partner at Meridian Compensation Partners, LLC.
Andrew dives deep into the complexities of establishing resilient executive compensation frameworks amid the uncertainties of the global economic landscape.
Key Takeaways:
(01:33) Managing a corporation involves addressing classic business challenges and creating effective compensation arrangements in uncertain times.
(02:19) Resilient compensation designs are those that stand the test of time and do not require frequent revisions.
(03:46) A balance between market-aligned compensation plans and business objectives is crucial for resilient design.
(05:00) Simplicity in compensation design can lead to resilience, but it must also align with other business goals like shareholder alignment.
(06:07) The resilience of compensation plans can vary based on a company’s pay philosophy and its comfort with using discretion in performance assessment.
(09:20) Incorporating flexibility and discretion in executive compensation plans can add resilience, reflecting the need to adapt to unpredictable circumstances.
(11:21) Setting goals that balance ambition with achievable targets can enhance the resilience of compensation programs.
(13:44) Testing the resilience of compensation frameworks can help ensure they are robust enough to withstand future challenges.
This episode is brought to you by Meridian Compensation Partners, LLC. Learn more by visiting MeridianCP.com.
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