Stepping back to understand the ideal purpose, mission, culture, and practices of a corporation and its board is essential to developing a holistic model of compensation. Any compensation system employed must emerge from and serve these elements.
The corporate purpose, mission and culture will differ from one company to another. For example, a small family business may have very different priorities than a Fortune 100 firm. Therefore, The Delves Group asks the board questions to guide its thinking about compensation and governance, rather than trying to define for the board what the specific priorities in each area should be:
Each organization must answer these questions for itself, to move toward designing the most effective and fair compensation system. The Delves Group’s principles-based approach to corporate governance and executive compensation provides a framework within which boards can hold these discussions.