Executive Compensation – An Intro To Getting It Right

Executives are paid to make critical decisions.  They should also bring critical thinking to maximize their own executive compensation.  Often, over 50% of comp comes in the form of long-term incentives; stock, options, stock appreciation rights and the like.  For public company executives, Section 16 insider issues, trading windows, 144 restrictions, 10b5-1 plans, hedging strategies, minimum equity exposure levels required by the board, tax, charitable giving and inter-generational wealth transfer opportunities and other considerations all come into play.

The prospect of maximizing your executive compensation begins with a thorough understanding of the plans themselves and the rules under which your compensation is governed.  We find most executives are either too busy or they are highly skilled, but not in these specific areas of expertise, that professional advice is warranted.  At Faith Investor Services, some of the greatest impact we have is with executives.  It requires that we bring our best thinking and the breadth of our team’s skill to bear for these families.  Great opportunities can be found in the complex challenges of executive compensation.

Faith Investor Services is here to help you. Reach out to us at faithinvestorservices.com/contact.