Realign Post-Acquisition Compensation Structure
Filed in: Total Rewards — Organizational Change
Challenge:
Realign Compensation Structure Following Major Acquisition
A Fortune 500 durable-goods manufacturer had just acquired another global company and needed to align the executive compensation structures of the two companies.The acquiring company was centralized while the acquired company had numerous decentralized businesses across the globe.
Solution:
Conduct Global Compensation Review to Lay Groundwork for Change
Company management asked The Chatfield Group to develop a single, comprehensive approach to executive compensation that would encompass all of the executive positions at the new, expanded company.During the engagement, we reviewed the organizational structure globally and updated all job descriptions. We market-priced executive positions on a global basis, making sure that each position accurately reflected its particular industry, business, location, and job market. We aligned grade levels for comparable positions across business units and global regions. And we reviewed every position and grade level with an appropriate HR executive to ensure that the new compensation structure addressed both internal and external job values.
Recognizing that the new, more complex corporate organization would result in more frequent expatriate assignments, The Chatfield Group also conducted a global review of the company’s expatriate compensation practices. Following this review, we created a practical expatriate compensation policy to guide management decisions.