The Executive Pay Systems Performance and Remuneration Assessment (PRA) provides a practical, objective and quantitative evaluation of the process, tools and methodologies used in the annual remuneration review specifically, and the remuneration decision making process generally. The PRA delivers a report of the state of the current organisational capability - identifying gaps and issues. The PRA provides recommendations for improvement including potential savings.
- Gain objective quantified insight to improve annual remuneration review efficiency and effectiveness;
- Improve the organisational capability to link remuneration with corporate performance, including the ability to demonstrate that link;
- Identify the systemic impediments which have restricted the organisations ability to use remuneration as a performance improvement device;
- Justify and prioritise the investments needed to remedy these systemic impediments;
- Justify and prioritise the investments needed to improve the organisations ability to deliver an efficient annual remuneration review on time and to budget.
Identifies Current Systems Capability
Utilising specific metrics to assess remuneration systems effectiveness, the PRA identifies the level at which the organisation operates and proposes improvement actions to take it to the next level and beyond. The levels range from crisis management through to strategic lever - the point at which remuneration has an identifiable impact on organisational performance: see the diagram below.
Performance and Remuneration Assessment Phases