Executive Compensation


The Centre Group specializes in developing executive compensation programs for chief executives and key leaders in privately held companies or divisions of larger, publicly-held corporations.  Our aim is to help companies achieve performance goals by aligning value-building strategies and results with senior executive rewards.
There are a number of reasons why our clients implement performance-based reward systems that target this elite audience:

  1. To attract talented executives.  The whole compensation package needs to be competitive.  An executive package typically includes salary, benefits and supplemental benefits, annual incentives, long-term incentives and assorted perks.  If a privately held company wishes to attract an executive from a publicly held company, it must offer a package that mirrors equity-based plans such as stock options, stock appreciation rights or restricted stock plans.
  2. To build engagement. A privately held company often prefers not to expand its ownership, yet it wants its executives to think like owners; making decisions that will enhance company value.  To encourage this level of engagement, companies turn to phantom equity plans.  They reward growth and operating excellence, but do not dilute ownership.
  3. To retain talent. It is expensive to lose a key executive.  Designing a compensation plan that builds value, by deferring rewards and making payouts contingent upon continued service may make an executive less receptive to outside offers.  There will always be someone else who is willing to pay a great performer more, but creating consequences for leaving prematurely is an important plan design feature.
  4. To share the wealth. As the company builds value for its owners, it should also build an estate for the dedicated executives who contributed to that success. Sharing a portion of the success helps an executive build a sense of economic security for the future.  This frees an executive to dedicate his/her attention to the company.

There are many advantages to working for a privately-held or captive company.  There is no reason why the appeal should be diminished for an executive due to the absence of an innovative and competitive compensation program.