The Challenge : A private company in the personal services business where the family Board had not sought external input into the CEO pay (a family member) for some time. Egan Associates met with the key Board members in order to understand the dynamics of the company management, the division of accountabilities (and autonomy), and the expectations of the various stakeholders.

Advice was provided to the Board regarding a competitive contemporary level of fixed pay for the CEO and the design of an annual incentive scheme which provided an arm’s length approach to the assessment of the CEO’s effectiveness in delivering the business plan, and an appropriate incentive as a result.  The implementation of the new framework was discussed with the Board including strategies for its ongoing management and the engagement of the CEO in the process.

The Outcome : A new role for us as advisors to this client, meeting their changing needs.