PlanFacts

Deep Dive into Executive Compensation: A Case Study

Newport Group helped a large conglomerate see the “big picture” of its executive compensation structure and provided a vision for long term improvements. 

The Situation

The chief human resources officer of a large, multi-industry conglomerate was looking for a full compensation review to determine if the organization had a competitive executive compensation package with appropriate incentive pay and long-term compensation options. They contacted Newport Group’s Non-Qualified business line, who turned to our Compensation Consulting team for additional insight. The conglomerate had 11,000 employees, an annual revenue of $6 billion and were a part of the following industries: auto dealerships, sports and entertainment, consumer finance and real estate.

The Solution

Newport Group’s Compensation Consulting team completed an initial benchmarking study of the conglomerate’s compensation structure. The team then collaborated with the Non-Qualified business line to better explain how a strong short and long term incentive package, combined with a modern deferred compensation plan could help add value to the executive compensation package. Over the course of two years, the team created a solution which included an executive compensation philosophy document and multiple executive benchmarking studies for the conglomerate’s business lines utilizing the latest competitive salary data from publicly-held and private peer companies. The team also provided intelligence on incentive plan metrics and award amounts, and a conceptual design for a non-qualified deferred compensation (NQDC) plan. 

The Outcome

The solution provided information which empowered the conglomerate to make informed executive compensation decisions and improve the offerings of its executive package to enhance the attraction and retention of top team members. 



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Disclaimer
The information contained herein is for informational purposes only and client results will vary.


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Newport Group, Inc. and its affiliates provide recordkeeping, plan administration, trust and custody, consulting, fiduciary consulting, insurance and brokerage services. Fiduciary consulting services are provided through Newport Group Securities, Inc., an SEC-registered investment adviser and FINRA-registered broker-dealer, and Newport Group Consulting, LLC, an SEC-registered investment adviser. Newport Group Securities, Inc. and Newport Group Consulting, LLC are affiliates of Newport Group, Inc. All securities transactions are provided through Newport Group Securities, Inc., in its role as broker-dealer. All fiduciary consulting services are provided through the registered investment advisers. When offering variable insurance products, Newport Group Securities, Inc. acts solely in its capacity as a broker-dealer. Trust and custody services provided by Newport Trust Company, a New Hampshire state chartered trust company and wholly owned subsidiary of Newport Group, Inc.