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A minerals, environmental, oil field service and transportation company with 2,500 employees globally

The Situation

The company had grown significantly but their compensation plans and structure had not been updated. The company wanted to streamline its compensation process and provide a more consistent and standard approach for compensation globally so that there was a set of guidelines to act as a framework for compensation decisions. The company wanted to tightly align decisions on compensation to the achievement of critical business and individual goals by improving the linkage between the value of total compensation and its relationship to performance.

The Deliverables

  • The design and development of a compensation structure that can be implemented globally.
  • The creation of salary administrative guidelines that are aligned with the company’s reward philosophy and performance management system.
  • The design of a short-term incentive (STI) plan that will support the company’s business strategy and objectives.
  • The development of a long-term incentive (LTI) plan that provides the appropriate LTI opportunity, while balancing shareholder’s interests.

The Results Achieved

  • A global compensation structure and salary administration guidelines were developed and implemented on a pilot basis for one of its largest divisions, which included six (6) countries outside the U.S.
  • A global STI plan was developed.
  • The LTI plan was redesigned to provide target guidelines based on the newly developed compensation structure. SARs were granted in tandem with options.
  • All of this was designed for a January 1 implementation date, which was six (6) months from the start of the project.