Top 10 tips for success in executive remuneration

Here are my personal “top tips” for operating successfully as an in-house executive remuneration specialist…

1)  Develop a robust understanding of how the business makes money.

Strong commercial acumen is critical for being able to design relevant remuneration plans, and to build a compelling narrative for your organisation that shows clear alignment between this, and the business purpose, strategy, values and culture.

2)  Quickly make friends with colleagues in strategy, finance and investor relations.

Strategy to understand the big picture strategic direction to inform incentive plan design.

Finance to help with financial modelling, and ensure targets are sufficiently stretching.

Investor Relations to help navigate through, and influence, investor sentiment.

3)  Build a cross functional “advisory group” to act as advocates for change.

Ideally the group should be made up of direct reports of ExCo members – they can provide an ear to the ground, help generate ideas for change that are relevant to the business, and sense-check your proposals before you present them to the CEO.

4)  Develop your external network with counterparts from other organisations.

Make time in your diary to attend relevant networking events.

5)   Broaden experience outside of your immediate functional area.

A broad business perspective will increase your impact and influence – this doesn’t have to be within your own organisation e.g. consider voluntary work or taking a trustee role with a charity.

6)   Maintain a balanced, non-political approach – trust and integrity are critical.

You are the honest broker that must balance the sometimes (or potentially often!) conflicting views of the numerous stakeholders.

7) Draw insights and intelligence from facts and data.

For example, do not simply present market data in isolation, but provide context to explain what meaningful conclusions can be drawn and how this may inform options going forward.

8)  Gain trust and credibility with the CHRO, CEO and RemCo Chair (+ Chairman).

If you don’t have this, it will make your job really difficult no matter how technically proficient you are! These stakeholders may have conflicting views and agendas, but you need to demonstrate you have listened, and can navigate a way through to reach an outcome acceptable to all.

9)  Maintain a sense of perspective.

Pay and benefits are emotional subjects, but stay detached and fact based as far as possible.

10)  Do the right thing!

Doing the right thing involves observing, asking, listening, and a touch of creativity. Ensure you have your organisation’s best long-term interests at heart, and speak-up in the spirit of making it better.