How We Help

The working relationship between Hugessen Consulting and our clients on the Board of Directors is one of close partnership. We are the Board's "eyes and ears" in its dealings with management on executive compensation matters and help bridge the information gap that often exists between boards and management on executive compensation issues. We work collaboratively with, but at arm's length from, management in order to bring transparency to the decision making process, and fairness and performance accountability to compensation programs.

Hugessen Consulting typically assists a client in one of two ways:

1. Ongoing Compensation Committee Support

At every meeting, the compensation committee must deal with competing interests in an area beset by technical complexities. This is a demanding, time-consuming job, requiring technical expertise. This is why the compensation committee needs a Hugessen Consulting consultant as "co-pilot" – someone who is on their side. Hugessen Consulting provides the support the compensation committee needs to fulfill the commitments found in their charter.

What we do:

  • Review and revise the committee mandate
  • Advise on an appropriate meeting schedule and preliminary agenda on a forward-looking 12-14 months basis.
  • Annual policy review and update including the choice of comparator companies
  • Annual pay and performance analysis.
  • Review and assist in preparation of public disclosure documentation
  • Design and facilitate director development session on executive compensation and related issues.
  • Ad hoc tasks

2. Comprehensive Executive Compensation Program Review

From time to time major events in a company history drive a need to conduct a comprehensive review of the company's executive compensation program. Such events include:

  • a potential sale, change of control, or restructuring
  • a change in leadership and/or reorganization
  • a major change in business environment

The compensation committee and top management will decide it is time for a complete review and possible overhaul of the executive compensation program. The resulting work required are stand-alone projects (in contrast to the on-going support described in the previous section) and the scale can be significant. A large project might take from 6 to 9 months while for smaller clients a comprehensive review would take 8 to 10 weeks.

What we do:

  • Complete initial research and analysis of the client's operating environment, business plans, financial performance data, and existing compensation policies, plans and data.
  • Meet with members of the compensation committee and executive leadership team (typically 5 to 10 people)
  • Develop a set of findings on current compensation and performance measurement policies and practices, including business performance measurement and assessment, and linkage of actual compensation levels to business performance.
  • Develop a set of guiding principles for change together with possible program modification meeting the principles.
  • Work with the compensation committee and management to develop a detailed set of proposed changes together with rationale for each.
  • Facilitate the review and approval process with the full board and with shareholders, as required.
  • Advise on implementation of communication as required.