 STRATEGIC COMPENSATION MANAGEMENT (SCM)
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Compensation itself is a strategic business element in your company, and to be effective your compensation programs must over time: …drive outstanding performance …align with the interests of all stakeholders …retain executive talent …provide competitive advantage …integrate with overall strategy …and demonstrate a definable relationship with performance.
TBG believes that future executive compensation decisions and governance in the real estate/REIT marketplace will require not only the demonstration of market benchmark levels of compensation … but, as well a clear and definitive context to industry, peer group and position relationships between compensation and market/financial performance.
Clarity of these relationships form an essential element of the long-term investment status of REITs that has been established over the past few years. Sustaining investor relations and public confidence in REIT/real estate investment will require consistent performance … as well as leadership in governance, strategy and compensation practices.
THE BRADFORD GROUP (TBG) has developed SCM to respond to these issues building the model of the next frontier of executive compensation practice and governance in the real estate industry.
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Past is Prologue
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Evolution, not revolution … by building on contemporary methods, only SCM defines the emerging platform and standards for greater clarity in REIT/real estate CEO/executive compensation rationale and independent governance.
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Strategic Mandate
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Boards are more independent, active, involved … and more strategic in fulfilling their mandate, as executive compensation is shifting from tactical to strategic, in philosophy, design, practice and governance.> More Information
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Risks and Opportunities
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Opportunities for Boards, Compensation Committees, CEOs, and Senior Management to address potential vulnerabilities in current compensation assessment are inherent in utilizing the SCM approach. > More Information
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SCM Model
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To the contemporary model, SCM adds - Compensation Performance Relationships and Compensation Planning Capability – while enhancing the two basic elements of Current Market Benchmarking and Relative Performance Measures. > More Information
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Compensation/
Performance Relationships
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After years of “pay for performance,” real relationships have emerged … conceptually and statistically valid for industry, Peer Group and Position … establishing the foundation for SCM’s approach to assessment and opportunity. > More Information
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Strategic Zones
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Relationships create zones – reflecting size and alignment, as well as strategic situation, risk, reward and tactical options … allowing SCM to provide greater clarity for compensation policy, practice, management and governance. > More Information
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Compensation/
Performance Metrics
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SCM advances metrics, utilizing longer time frames, that enhance market benchmarking with dynamic indicators of absolute and relative performance vs. peers, simplifying the interpretation of REIT market/financial inconsistencies driven by real estate cycles and capital shifts. > More Information
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Benefits of SCM
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Seven compelling benefits from SCM offer opportunity – impacting Boards, Compensation Committees, CEOs, Senior Management, and shareholders – and establishing industry leadership. > More Information
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Transitioning to SCM
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A dozen insightful improvements in the thinking, analysis, design, evaluation and governance of REIT executive compensation are integrated into TBG's SCM. > More Information
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Progressive vs. Stepwise Structure
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To better adapt to counter cyclical performance issues, reflect multi-year real estate objectives, and match REITs long-term investment horizon – SCM structure improves the temporal correlation of compensation and performance. > More Information
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From Tactical to
Strategic Design
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Avoiding a mirror of what’s measured in the market; SCM based design shifts from tactical to strategic features, supported by industry trends, and stronger linkage to both corporate strategy and business plan objectives. > More Information
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Compensation
Planning
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Compensation planning also emerges from SCM – as the shift to a predictive platform and metrics facilitates forward-looking perspectives from corporate financial projections, supporting retention, expectations and career paths. > More Information
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