Losing out on the services of a key team leader can be devastating to a company of any size.

Truly special executives provide tremendous value to their business, and, in some instances, they may be practically irreplaceable.

How Do You Stop Your Best Employees From Leaving?

Studies indicate that –– on average –– it costs 33% of a professional’s yearly salary to replace them if they leave. (That’s $66,000 extra to replace a $200,000 per-year professional.) Worse, the replacement figure is often much higher for talented executives with unique skill sets. Some experts estimate that replacing an executive may cost as much as double their base salary, aside from the potential lost opportunity that talented executive could have brought to the company.

That’s why executive compensation packages are so important to sustainable growth and viability of businesses. Businesses that manage to retain their top talent save money, time, and maintain crucial internal continuity. Conversely, companies that lose their best leaders to competitors will miss out on numerous growth opportunities and may experience decreased employee morale and productivity.

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Creating Competitive Executive Compensation Packages

Executive compensation packages should be customized to suit the needs, goals, and philosophies of business leaders and executives alike. Cookie-cutter compensation plans could inhibit business growth and will rarely excite ambitious executives.

In order to develop successful compensation packages, business leaders must first determine an overall, long-term business plan. By figuring out what they want to achieve and how they want to achieve it, business leaders can more clearly form compensation packages that align with their overall company vision.

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Customized Executive Compensation Packages

There are a myriad of ways to customize executive compensation packages to ensure employee satisfaction, while also adhering to larger business continuity plans.

While not a comprehensive list, here are some of the methods used to enhance executive compensation packages:

  • Increased Cash Compensation.
  • Stock Options – allow executives to convert holdings to common stock and sell on the market.
  • Deferred Compensation – pushes back cash payments to later dates.
  • Long-Term Incentive Plans (LTIPs) – pay-for-performance compensation in which executives are rewarded for meeting certain predetermined goals and benchmarks.
  • Retirement Packages – compensation packages paid out upon retirement. They often contain healthcare benefits.
  • Personal Protections – life, disability and long term care coverages that are there for their families if something happens to them.
  • Miscellaneous Perks – may include the use of private cars, private jets, travel accommodations, club memberships, etc.

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Executive Compensation Consulting with Helm Financial

Creating compensation packages that satisfy all parties involved requires diligent research, extensive planning, and knowledge of the market. Our team at Helm Financial has the skills, experience, and resources to ensure your compensation packages retain your best and brightest without mortgaging your company’s future.

  • Not only will we collaborate with your team to uncover unique compensation solutions, but we’ll also:
  • Create compensation package options within a larger business continuity strategy.
  • Review executive market data and utilize analytics to address issues specific to your company and industry.
  • Assist in the implementation and review of executive compensation packages.
  • Work alongside other industry professionals who can assist with the legal arrangements.
  • Deliver serious value and help you retain key personnel.

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Executive Economic Impact Calculator

At Helm Financial, we are in the business of protecting businesses most valuable asset… its people. You can insure against the death or disability of your key people, but from a probability standpoint, you are more likely to lose a key person to a competitor or from them starting their own business. However, there are strategies that can significantly reduce this risk.

Our Executive Compensation Calculator will help you determine the true economic impact of a key person at your company so you can see what it would mean in dollars and cents to the business if they voluntarily left and had to be replaced.

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Ready to figure out how you can keep your best leaders by using executive compensation strategies?

Contact us to learn more about potential options for your company.