Today's Challenges and Today's Solutions
In today's environment, perpetual regulatory challenges and heightened market scrutiny make structuring executive compensation programs a more challenging task than ever before. To attract and motivate leaders in this climate, companies need to balance a number of frequently conflicting requirements in order to be successful.
Today’s solutions need to:
- Address short-term and long-term objectives
- Enhance corporate performance and support enterprise strategy
- Reflect an appropriate sharing of the increased value that leadership creates
- Be compliant with increased regulations and corporate scrutiny, while retaining flexibility and being employee friendly
In the past, many solutions have been designed to address specific agendas: managing tax concerns, attraction and retention requirements, increasing performance leverage, specific business challenges, or aligning with industry practices. Today organisations need to approach all of them in a holistic manner and ensure there is a very clear and visible linkage between value creation and employee rewards
Aon Executive Compensation Consulting Group is uniquely positioned to help your organisation address these needs, and develop the right leadership compensation structures for your business. Aon brings solid business understanding, technical sophistication, and unparalleled Indian and global data to develop solutions that work for you. Our expertise in executive compensation structuring and benchmarking, tax, regulatory compliance, corporate governance, short and long term incentive plan design, share based payments and competitive intelligence enables us to design custom solutions that add value to your business and align the executive compensation strategy and structure with overall business strategy.
Services We Provide
Executive Compensation and Analysis
- Executive compensation philosophy audit and design
- Custom peer group selection and performance/pay analysis
- Executive compensation benchmarking and job pricing
- Best practice and emerging trends research
- Non-executive Director compensation design/analysis
- Annual Executive Compensation Survey
- Short-term incentive plan design
- Equity and cash based long-term incentive design
- Performance metrics analysis and selection
- Change in control & severance plan design
- Total Rewards Architecture
- Nomination and Compensation Committee Support
- Board evaluation
- Committee evaluation
- Non-executive Director evaluation
- Pay and Performance alignment analysis
- Disclosure review and analysis
- Alignment of compensation practices with Companies Act - 2013 requirements
- Best Managed Boards Study
Technical Support Services
- Special program design and implementation (e.g. underwater option exchange programs)
- Accounting valuations for share based payments
- Ongoing research and tracking of all legislative and regulatory changes
Helping Boards Meet Their Fiduciary Responsibilities Efficiently and Effectively
Companies Act - 2013 has made the constitution of Nomination and Compensation Committee mandatory for all listed companies. Aon executive compensation consultants work directly for Board Nomination and Compensation Committees in the execution of their fiduciary responsibilities.
What Compensation Committees Require
Committees need independent advice to ensure their programs are delivering the intended results and are compliant with local regulations. This advice needs to be based on sound data and research, and should include a broad perspective balanced with industry-specific insights.
The Compensation or Compensation Committee also requires:
- The ability to translate the organisation's business and leadership needs into specific, value-added plans and programs.
- Up-to-date technical understanding, ensuring all programs reflect "best practice" and that they are effectively designed, managed and defensible.
- Open communication and insights that help shape decision-making and keep programs operating effectively on an ongoing basis.
- Assistance in managing the Committee's work effectively throughout the year
- Support in conducting Board, Committee and Director evaluation
Aon can help you directly address all these requirements, by providing you with a team that will partner with you, provide you with up-to-date, relevant market and trend data, and provide you on-going guidance on new developments.
To fulfill these requirements, Aon commits to providing:
- Analysis of peer group performance and trends to inform decisions and goal setting.
- Annual updates of current trends and new regulations.
- Ongoing client education on new laws, regulations and developments
- Technical support in preparing executive compensation related annual report disclosures
- An annual update of the Board's compensation program to ensure it supports enterprise goals and Board member retention.
- Annual pay-for-performance audits that show the comparative value of the organisation’s performance and compensation paid.
- Special studies or analysis, by request, to further explore an issue or prepare for a program change.
- Insight into the degree of stretch and complexity for annual and long-term incentive (LTI) goals.
This collaboration results in an executive compensation process that ensures sound governance coupled with openness and transparency. The collaboration also assures that open communication is maintained between the Committee, management and other Board members throughout the process; and that plans can be effectively audited, questioned, reviewed and enhanced to add value and produce the intended results.
Executive Compensation and Corporate Governance Consulting Technical Capabilities and Resources
Aon maintains technical capabilities and resources that are unparalleled in scope to support your executive compensation needs.