Executive Compensation

The senior directors of Total Compensation Solutions (TCS) are experts in executive compensation. TCS will help you determine whether your top executives' compensation packages are competitive and appropriate. TCS will review the overall total rewards package which could include any of the following:

• Cash Compensation
• Bonus and/or Incentive Plans
• Benefits and Perquisites
• Supplemental Retirement Plans

Call TCS about our Executive Compensation services at 914-730 -7300 or email Tom Bailey at tbailey@total-comp.com

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On a relative scale, no single topic has earned more attention than that of the pay packages offered to executives. Pay packages are being scrutinized in publicly held and private companies as well as the not-for-profit sector. The focus of shareholders, Federal and state government entities and the media has been on compensation plans that provide significant gains to executives in spite of sub-standard performance. The same is true for not-for-profit organizations where relatively large pay packages have been offered to executives from organizations that have not-for-profit or tax-deferred status.

As a result, there is tremendous responsibility vested on those that research, review and approve pay packages for executives. Pay packages that are today considered necessary to attract, retain and motivate the highest caliber employee seem extraordinary relative to the broad-based employee population. These pay packages are typically justified in the context of the current market. However, they need to be developed independently and made contingent upon the achievement of strategic corporate objectives; e.g., (pay for performance). The design of executive pay packages should be dependent on the following:

• Individual executive performance
• Overall corporate or organization performance
• Linkage between executive performance and corporate strategy
• Communication of goals, tactics and successes at all levels.

We believe that there is no "magic" to executive compensation. Our approach to the design of pay packages for executives is guided by each company’s unique needs, whether profit or not-for-profit, whether impacted by industry sector, whether dependent upon community, governmental or family relationships. Each organization is unique and deserves the full time and attention of an outside observer to sort through the details related to successful management. Our goal is to help devise the most appropriate compensation solutions for your organization.

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Salary Administration

The senior directors of Total Compensation Solutions (TCS) are experts in salary administration and broad-based compensation. TCS will help you determine whether your compensation packages are competitive and appropriate. TCS will review the overall total rewards package which could include any of the following:

• Cash Compensation
• Bonus and/or Incentive Plans
• Benefits Prevelance
• Salary Structure

Call TCS about our salary administration services at 914-730 -7300 or email tbailey@total-comp.com

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For the majority of people in the workforce, base salary is the most important element of their total compensation package. Employees regularly measure their own success by their salary level, how it gets adjusted periodically and how well they can maintain their standard of living. However, their title, their grade within the organization and their job duties and responsibilities within their respective department are also perceived to be important. Effective salary administration accounts for all of these factors among others and when successfully applied provides an effective tool for attracting and retaining talented people to an organization.

Salary administration is an umbrella concept that covers a variety of human resource tools and tactics. These fall into several categories including:

• Developing a compensation philosophy
• Evaluating positions for internal equity
• Establishing external competitiveness
• Developing an internal salary structure
• Making periodic adjustments to base salary
• Managing performance appraisal design
• Estimating salary adjustment budgets
• Developing salary administration policies and procedures.

Effective salary management is the bread and butter of any sound compensation program. It requires expertise in human resources management and it provides a critical link between business strategy, organization design, job evaluation, market analysis, salary structure development and application of sound policies and procedures to the development of unique compensation solutions.

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Incentive Compensation Planning

The senior directors of Total Compensation Solutions (TCS) are experts in bonus and incentive compensation. TCS will help you determine whether your bonus and/or incentive plans are competitive and appropriate. TCS can review and design your incentive plans which could include any of the following:

• Annual Bonus Plans
• Short-term Incentive Plans
• Long-term Incentive Plans
• Equity Incentive Plans

Call TCS about our Bonus and/or Incentive Compensation services at 914-730 -7300 or email Tom Bailey at tbailey@total-comp.com

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When effectively applied, incentive planning provides a strong link between organization goals and strategies and compensation. It can be an effective tool for motivating employees to increase both individual and organizational performance and recent market trends reveal that incentive planning can be effective in a not-for-profit environment as well as a for-profit environment.

The process for establishing an incentive compensation plan is as follows:

• Develop organization business strategy
• Link business strategy to overall goals and objectives
• Identify prospective plan participants
• Establish individual goals and objectives
• Evaluate market practices and determine target awards
• Assign performance objectives to award levels
• Communicate plan elements to staff.

Over the past decade, incentive planning and the concept of variable pay have gained widespread attention. Employers recognize that this a method of motivating employees to perform at higher levels. Employees recognize that they can affect the value of their own total cash compensation package by accomplishing the performance objectives set forth in a formal incentive plan.

Incentive compensation planning is a formal method of rewarding staff for achieving specific levels of performance "above and beyond" their normal duties and responsibilities. Each incentive plan is unique to the organization, whether profit driven or success driven in a not-for-profit environment. Each incentive plan is individually tailored to the staff and provides an excellent compensation solution for organizational performance.

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Non Profit Compensation

The senior directors and consultants of Total Compensation Solutions (TCS) have worked extensively with the non profit sector on executive compensation, salary administration and broad-based compensation. TCS can help your organization determine whether your compensation packages are competitive and appropriate. TCS will review the overall total rewards package which could include any of the following:

• Cash Compensation
• Bonus and/or Incentive Plans
• Benefits Prevelance
• Salary Structure

Call TCS about any of our non profit compensation services at 914-730 -7300 or email Tom Bailey at tbailey@total-comp.com

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Survey Consulting

Total Compensation Solutions specializes in the design and conduct of custom surveys for industry groups, trade associations and individual organizations. We complete numerous custom surveys each year in consultation with steering committees that specify the design, coverage and timing of these projects. We provide third-party objectivity and guidance throughout the process and we plan each step of the survey in consultation with prospective participants.

Our survey project planning model includes the following steps:

• Convene survey steering committee meeting
• Establish data elements to be surveyed
• Research prospective participants
• Facilitate survey job match meeting
• Design survey instrument
• Distribute data input documents
• Promote survey via phone, fax, mail and email
• Compile data and screen for accuracy
• Analyze data and perform statistical tests
• Develop survey report
• Present findings in report

Call TCS about any of our Survey Consulting services at 914-730 -7300 or email Tom Bailey at tbailey@total-comp.com

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Surveys have become the foundation of successful human resources consulting and typically drive a project by providing the external analysis needed for clients to make critical pay decisions.

Our surveys are typically commissioned by:

• An individual company or organization
• An informal group of companies
• An industry trade association and/or
• A professional member association.

Total Compensation Solutions also sponsors its own surveys to address specific human resources issues such as:

• Executive compensation
• Board of Directors Compensation,
• Not-for-profit sector compensation;
• Salary adjustment budgets,
• Nursing home industry compensation,
• Financial services/insurance industry compensation,
• Publishing industry compensation,
• Other human resources issues

We also prepare customized cuts of data from our client-sponsored surveys to meet more stringent client needs and trends.

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Board of Directors Compensation

The senior directors of Total Compensation Solutions have been working with clients on Board of Director Compensation and Corporate Governance for over 20 years. TCS can help your organization determine if your board compensation is competitive and appropriate and if your organization is practicing proper board governance

Call TCS about our Board of Directors Compensation and/or Corporate Governance services at 914-730 -7300 or email Tom Bailey at tbailey@total-comp.com

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The compensation paid to Directors is one of the most timely issues confronting companies today. Recent events in the business world, the attention of both Federal and state legislators and the requirement that Directors fulfill their fiduciary responsibilities to shareholders and other stakeholders of an organization has made this a very hot topic.

Our database includes information on a variety of Board characteristics including:

• Size of Board of Directors
• Retainers paid for regular Board service
• Fees paid for Committee work
• Term for Directors
• Alternative pay strategies for Board members
• Perquisites offered to Board members.

The variety of pay elements used for Directors, their qualifications for the job and other pay and benefits issues have become relevant to the discussion of Board of Director’s pay. In the current environment, we strongly encourage our clients to review Board compensation levels at a minimum every 3 years to ensure the appropriateness of current practice.

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Executive Deferred Compensation

The senior directors of Total Compensation Solutions can help your organization decifer the complex issues of executive deferred compensation.

Call TCS about our executive deferred compensation services at 914-730 -7300 or email Tom Bailey at tbailey@total-comp.com

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Tax legislation, new government regulations and increasing shareholder awareness over the past twenty years have made retirement planning for executives a moderately difficult topic for consideration. Traditional retirement benefits have been eroded by government regulation and companies now seek to endow their senior executives with non-qualified benefits that replace some of the lost retirement benefits.

Whether through a defined contribution or a defined benefit retirement plan, employers now find it necessary to offer non-qualified plans as a means of attracting and retaining key employees. These non-qualified benefits create new benefit opportunities. They are an essential part of the total rewards system for senior executives and have become an integral part of the total compensation package.

There are three types of plans that fall into the broad category of Executive Deferred Compensation can take many forms both qualified and nonqualified:

Excess or Restoration plans that restore only those benefits limited by the government. Some of these limits imposed by the IRS for 2009 include:

• 401(k) or 403(b) elective deferral = $16,500
• 457(b) non-qualified deferred limit = $16,500
• Defined benefit plan maximum pension = $195,000
• Defined contribution plan maximum addition = $49,000
• Qualified plan annual compensation limit = $245,000

Voluntary deferred compensation plan that allow executives to defer portions of their overall compensation package including:

• Bonus or Incentive plan payments
• Long-term cash compensation payments and/or
• Other Cash compensation

Supplemental Executive Retirement Plans (SERP) that offer a competitive retirement package for mid-career executives that have relatively fewer years in the company’s retirement plan.

In a robust economy, deferred compensation allows executives to maintain their standard of living after retirement on a tax effective basis. Deferred compensation also allows executives to mitigate the negative effects of the economy after their retirement.

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Performance Management

The senior directors of Total Compensation Solutions have extensive experience in the area of Performance Management.

TCS can help you develop a performance management system that fits with your pay for performance philosophy. We can also develop and deliver customized training so that managers and staff have the tools to utilize the system.

Call TCS about our Performance Management services at 914-730 -7300 or email Tom Bailey at tbailey@total-comp.com

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Performance management is distinctly different from performance appraisals or performance evaluation. Unlike the latter two activities, performance management is an interactive on-going process that links the goals and objectives of the organization, departments, and individuals. Performance management is a tool to:

• link organizational strategy and individual performance
• plan, direct, and improve performance
• communicate progress and direction changes

There are three key steps in the process:

• planning performance,
• managing performance, and
• appraising performance.

Planning begins at the organization level where the organization identifies and communicates the critical performance measures for the year. At an individual level employees and managers meet to agree on the goals and performance measures and standards. It helps both agree on what has to be done and how it will be judged. Managing performance is an on-going process where the organization, managers, and employees monitor progress against goals, provide feedback, and develop mid-course corrections if required. Finally, appraisal is the formal process where results are reviewed, rated, and performance is recognized.

From a human resources perspective, performance management encourages employees to participate in goal setting and on-going monitoring and communication of progress against goals. A well designed performance management system should not result in surprises at the year-end review meeting.

Development of an effective performance management system requires

• Active leadership support and championing, and
• Meaningful differentiation of performance and giving honest performance feedback

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Severance Planning

Martha Glantz, a senior director of Total Compensation Solutions, has extensive experience in the area of Severance Planning. Martha has guided several major companies through large downsizing and she can help your organization through the very difficult process of severance planning.

Our strategic partner Eisenberg Resources can also assistance your organization with Outplacement Services.

Call TCS about our Severance Planning services at 914-730 -7300 or email Tom Bailey at tbailey@total-comp.com