Kathryn Neel Featured in Chief Executive: “How Private Companies Can Lead on Executive Pay”

Kathryn Neel was featured in Chief Executive in an article titled, “How Private Companies Can Lead on Executive Pay.”

In the article, Neel writes:

You might think that private companies today would be having a hard time attracting great executives. After all, outside of private equity-owned businesses, private companies don’t give long-term incentives with heaps of stock and options. In other words, in private firms, the upside in compensation for executives is typically limited.

But the reality is that most private companies are doing just fine, thank you. And here’s why: They have freedom to act creatively to package pay with other items of value to fulfill the four purposes of pay design: to attract, retain, motivate, and reward competitively.

Here’s how:

Attracting talent: They tend to offer more cash compensation than many public companies, raising the basic reward/risk ratio right off the bat. On top of that, the absence of Wall Street pressure and meeting quarterly guidance is liberating. The cash pay, along with benefits, company structure, and location, offers a means to differentiate what the private firm has to offer a recruit relative to competitors.

Read the full article, “How Private Companies Can Lead on Executive Pay.”