Case Study 3:

Executive Pay Review in 12 Countries

When this global company wanted to reward its top executives outside of the U.S., it asked Global Rewards Solutions for help.

Challenge

The company needed to provide salary increases and performance bonuses to their top 80 executives outside of the United States. Unfortunately, no independent local pay assessment had ever been done. The company suspected that most of the positions were overpaid, but had no evidence to back this up.

Solution

We provided the company with guiding principles to conduct a pay assessment consistent with U.S. and local market trends. We obtained compensation data for each country, and compared it to data collected by each subsidiary. Finally, we coordinated a global conference call with the HR managers in all 12 countries to share the assessment criteria and obtain their buy-in.

Results

The data analysis, covering all the countries, found that most of the company’s executives were not overpaid. For these leaders, we helped develop a salary increase plan that was in line with both corporate guidelines and the local market.

A few of the company’s leaders, however, were extremely overpaid. We recommended keeping their base pay flat, but giving them the opportunity to earn more via a results-driven variable pay program.

Given the depth of the analysis and the early involvement of local management, all communications about these pay changes had credibility – both at the local and corporate level.

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