When executives are unhappy, their performance is likely to be affected. They may lack the incentive to perform in the best interest of your business, your shareholders or your clients. Although there is no cookie cutter formula for presenting the ideal compensation package to attract top talent, there are a few good traits to keep in mind:
- Pay package design: Executive pay arrangements typically consist of salary, short- and long-term incentives, benefits, prerequisites and severance/change-in-control agreements.
- Equity: The majority of most executive packages come in the form of company stock.
- Performance contingent pay: The most attractive packages are designed with the bulk of an individual’s compensation linked to established financial results and strategic goals.
- Vesting schedules: Even after financial and strategic objectives are met, full ownership of an equity award often depends on an executive’s compliance with certain covenants.
In an increasingly competitive market, you must be able to demonstrate key benefits that will draw A-level talent to your company.
What Executives Value
Money matters. It always will. However, there are other critical pieces to the executive compensation puzzle. Financial reward and other perks count, but exceptional talent requires a lot more than a paycheck. You need to offer:
- An environment that speaks to personal and professional growth. This is especially true among millennials, who are the executives of tomorrow. Numerous studies have shown that among members of Generation Y, opportunities to continuously learn and grow are much more important than just a good salary.
- Meaningful work. Talented executives want to make a difference. This includes opportunities to join other inspirational leaders. Leading talent thrives on working with counterparts who boast stellar reputations.
- Wealth creation opportunities. Provide your executives venues and platforms to succeed. Doing so will create wealth for your business and allow them to contribute to their own financial security.
No matter how bright the future looks, the most exceptional executive candidates will assess whether it has the right stuff to magnify their career and allow them to shine. They are excited by the possibility of:
- Developing new products or services.
- Improving the customer experience.
- Expanding the business through organic growth or acquisition.
- Playing a key role in enhancing corporate culture, perhaps changing the fabric from one of entitlement to one focused on high performance.
Each compensation package is fluid and negotiable. Get to know your candidates personally, and tailor their package to meet their aspirations. Identify the major skills and contributions they bring to the table, such as extensive industry contacts or strong partnership capabilities. Certain “extras” are worthy of pay premiums or above-and-beyond perks.
The executive recruiters at BrainWorks will source candidates that you won’t find on your own. We will walk you through your entire hiring process including design of the compensation package that securely closes the deal. Read our related posts or contact us today to learn more.