Risk-Based Compensation
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Risk-Based Compensation

Representative Engagements

Compensation plans should align with company values and improve business performance. They should not be rote programs or money delivery devices but should instead send a message to staff and shareholders of commitment to performance and growth.

 

Promontory builds individualized compensation solutions around clients’ business plans and strategies, taking into account the risks faced. We do not believe in one-size-fits-all compensation programs. Our professionals use a proprietary system to design the optimal compensation plan to match the business model, ensuring that correct incentives are in place for the company to reachits goals. We meld base salary, annual incentives, and long-term awards into a coherent whole that, in combination with other factors, enables a company to attract and retain top talent. Promontory is expert in risk-based plans that meet evolving regulatory expectations, carefully factoring in loss prevention when developing compensation programs.

Our services also include helping organizations build the human resource infrastructure needed for their compensation systems to work effectively. We produce job descriptions, generate salary and grade structures, assign appropriate grades and titles to positions, develop meaningful performance management systems and development programs, and design and implement recognition plans.

Promontory provides assistance with:

  • Developing compensation policies that align with a company’s risk framework
  • Defining appropriate roles of risk management, finance, human resources, and internal audit in the compensation process
  • Enhancing the corporate governance framework for compensation
  • Identifying best practices, including risk metrics and bonus pool determinations
  • Preparing for supervisory reviews of the company’s compliance with regulatory guidance
  • Advising senior management and the board regarding interaction with regulators on compensation issues
  • Developing programs to communicate compensation plans to stakeholders

Representative Engagements

  • Assisting LCBOs in preparing gap analyses and action plans in response to the Federal Reserve’s horizontal review