A global view on executive compensation

Mercer’s executive compensation consultants help organisations design compensation policies and incentive plans that are aligned to performance, defensible to external stakeholders, linked to wider reward strategy and designed to drive future performance.

We advise both companies in steady-state and those going through change (IPO, M&A, disposal, new strategy).

Executive compensation: transparency in a time of change

Executive compensation is under intense pressure with strong, global competition for talent but against a backdrop of wealth disparity and scrutiny over who benefits from corporate growth.

Businesses need to be able to attract and keep the very best executives, justify executive pay in the context performance, their wider people and reward agenda and evolve their approaches as their business strategies evolve.

Our consultants’ expertise in both executive pay and workforce reward help businesses position executive remuneration as part of a joined-up pay strategy for the whole of the workforce.

Executive pay expertise that goes beyond the boardroom

Our compensation experts build a deep understanding of every company that we work with and create a bespoke, tailored approach to executive remuneration for each client.
  • Set executive pay levels
    Our executive compensation consultants benchmark companies’ executive pay based on our own survey data and external sources. We help our clients interpret that information and use it to develop their remuneration decisions. That could include taking account of an organisation’s life stage and factors such as cyclicality or volatility in the sector where it operates.
  • Pay and incentives design
    We start with understanding company strategy, culture, goals, stakeholder environment and the behaviours it wants to drive through its approach to executive compensation. Then we explore how to translate that into an incentive plan that will motivate and engage executives, set appropriate metrics and define specific goals. Finally, we help companies communicate that information to executives, shareholders and other stakeholders. Mercer’s whole-of-business expertise also means we can help organisations link executive compensation to wider pay policies.
  • Manage pay governance
    Compensation packages need to be legally compliant, acceptable to shareholders, well explained and cost-effective. They are subject to voting in publicly listed companies, and good governance is crucial to avoid pay scandals. Achieving this requires outstanding stakeholder management, across the Remuneration Committee, CEO and shareholders.

UK Board Remuneration Handbook 2023

Mercer’s 2023 UK Board Remuneration Handbook covers the latest FTSE350 board remuneration practices and trends.

Your long-term partner for executive compensation and workforce rewards

Mercer’s executive compensation consultancy includes benchmarking, incentive design, disclosure, stakeholder management and support services.

Businesses trust us as a long-term partner that can help them tell the story of what they want to achieve with their executive compensation strategy, support them through organisational change and align senior compensation with the rest of their reward strategy.

Our global, co-ordinated approach is underpinned by market-leading data, but we also take a step back to understand an organisation’s unique goals and the role of executive remuneration in the wider business context.

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