There is no best practice for executive compensation. A good way to think about it is as a long-term agreement between the organization and the executive team member by which the executive team member will receive a certain combination of short & long-term incentives and benefits against specific agreed criteria that can be time or performance oriented. As it looks like, normally it is quite complicated program to be established.
Based on our understanding of your business, Executive Compensation philosophy and strategy, we at Bakkah can design the right combination of compensations & benefits for your executive team in alignment with your organization strategy and in cost effective manner.
Comparing the cost of hiring, training or developing new executive team members with the cost of compensations used to retain and motivate existing high performing ones, there is considerably high return on investment (ROI) especially by linking executive members pay with the achievement of an organization’s strategic goals where the cost with no benefit risk is minimized.