Situation:
One of the top five money center banks in the USA was concerned about the competitiveness of the total compensation package for its executives who managed a global service business. The unit provided one-third of the bank's revenues. The primary issue concerned the comparability of the scope of responsibilities each executive had and their impact on the strategic plan to be the market leader in these service businesses among a very select group of companies.
Process
A team of D.G. McDermott Associates consultants interviewed the incumbents in the identified positions to determine the critical skills, competencies and scope of accountabilities for each job. Further, an organizational analysis revealed the uniqueness of how the bank was structured to deliver the services on a global basis. From this research, the team developed a survey instrument and pared down the list of competitor companies. The team then visited the identified companies and conducted an in-depth benchmark analysis, including organizational assessment, lines of business and services provided, global reach and customer profiles. In addition, the team obtained information on the competitors' rewards programs, especially long-term incentive compensation programs.
Solution
While no company is exactly comparable to its key competitors, the market research confirmed that the bank was a leading provider of state-of-the-art services on a global basis. Consequently, its executives had a broader range of responsibilities and faced greater challenges than their counterparts in competitor companies.
Outcome
Based on the recommendations of the D.G. McDermott Associates team, the client reviewed its use of the various compensation elements and decided to increase the long-term incentive compensation opportunity for several of the key positions.