Optimizing Incentive Compensation
Plans and Processes
Given the variety of activities as well as the number and range of employees in a position to assume significant risk, a national financial institution needed to review its incentive compensation program and processes against interagency regulatory guidance.
We assessed the client’s incentive compensation practices to ensure its risk-appropriate incentive compensation program met heightened standards and interagency guidance on sound incentive compensation practices.
- Conducted a comprehensive gap analysis of the client’s incentive compensation plans against regulatory expectations focusing on methods used to link compensation and risk, identification of key employees, and governance.
- Refined and improved policies and procedures for risk management processes and controls that reinforce balance between risks and results.
- Developed recommendations to guide the organization in fine-tuning its compensation arrangement practices consistent with regulatory expectations.
- Significantly reduced regulatory compliance and legal risks by improving documentation of the processes and controls associated with the design of our client’s compensation arrangements.
- Improved the maturity and sustainability of the client’s compensation practices.
- Avoided potential regulatory enforcement.