A special offering for directors of public, private, and non-profit organizations
Executive Compensation Trends
Michael J. Halloran, Senior Partner
On February 12, we were hosted at Sterneck Capital Management LLC and our guest speaker Mike Halloran covered a full range of compensation questions.
Mike, senior partner at Mercer has consulted on executive compensation and benefit issues for over 25 years, with a focus on linking executive compensation to business strategy and enhanced performance for shareholders, working with company management and board compensation committees. He joined us for a discussion on the timely topic of – compensation trends.
The program promised discussion on,
Trends in plan design,
Legal and regulatory landscape anticipating the impact of the Trump administration,
Tax reform impacts on executive compensation,
Proxy advisory focus areas, and
Institutional investor focus areas.
However, the chapter members enjoyed the opportunity to ask more specific questions from their boardrooms, and Mike shared advice gathered from advising many boards across various market segments.
Some of the key points covered included:
Key considerations around peer groups used for TSR,
Trends around the use of options versus shares, as well as a mix of salary, bonus, and long-term incentives,
Gender pay analysis, and
Approaches to design “discretion” into your compensation approach.
We hope you found the discussion helpful and leveraged these topics into your respective boardroom. We want to thank Robin Sterneck for hosting us at the Sterneck Capital Management offices.
We welcome your input and ideas on programs that are high value to you, and we look forward to seeing you again soon as we round out the rest of the year with some terrific speakers and topics.
Mike Halloran is a Senior Partner specializing in executive compensation based in Dallas. He has consulted on executive compensation and benefit issues for over 25 years, with a focus on linking executive compensation to business strategy and enhanced performance for shareholders, working with company management and board compensation committees. Key areas of focus include:
Providing advice and direction to compensation committees on the levels, design and administration of total compensation packages for executives.
Strategizing with management teams on critical compensation issues, including the use of equity and design of total compensation programs
Designing executive incentive plans, with an emphasis on performance metrics and goal setting, and aligning pay and performance.
His clients include major publicly-traded companies (primarily in the Fortune 250), located in North America and in Europe, as well as a number of private companies. These clients include many leading multinational companies and their subsidiaries in a wide variety of industries.
He joined Mercer in the Fall of 2001 when his prior firm, SCA Consulting, was acquired by Mercer. At SCA, he was a Senior Partner with responsibility for the firm’s Dallas office. Before moving to Dallas, he was the managing partner of the New York office.
Mike received a BA degree in Mathematics from Northwestern University, and an MBA degree from Northwestern’s Kellogg School of Management, specializing in accounting and finance. He is a frequent speaker on executive compensation, and is often quoted in leading publications on this topic. He has also been a guest lecturer at Northwestern’s Kellogg School and SMU’s Cox School of Business. In 2014, he was named one of the Top 25 Consultants in the US by Consulting Magazine.