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WHY CHOOSE DGM?
INDUSTRIES SERVED
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SARBANES-OXLEY
INFORMATION
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Retention of Key Executives
Situation:
A
privately (family) owned national wholesaler and distributor of
gifts and novelty items was concerned about its ability to retain
key non-family executives who stayed with the company through some
difficult years. The family owners requested assistance regarding
the design of an equity-based compensation program for non-family
executives.
Process
As with all client assignments, D.G. McDermott
Associates consultants wanted first to understand the company's long-term
business goals, its strengths and weaknesses, and critical success
factors. Toward this end, D.G. McDermott Associates facilitated a
series of strategic planning retreats with the five top executives
of the company, both family owners and non-family executives.
Solution
Based on these meetings, D.G. McDermott Associates identified several
critical areas that needed to be addressed, including sales, marketing,
operations, and pay practices. Consequently, it recommended the following:
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An initial grant of restricted company
stock to the non-family executives to ensure retention
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Additional
options to purchase company stock based on long-term company
performance as measured by the attainment of specific net profit
goals
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Short-term incentives designed to
reward each executive for achieving specific financial and operational
goals in their respective areas of responsibility
Outcome
Since
D.G. McDermott Associates worked side by side with the key executive
of the company in a team atmosphere, its recommendations were
unanimously supported by all parties concerned and implemented.
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