Challenge
A family-owned business with a diverse portfolio of U.S. assets faced a significant leadership gap when its CEO departed unexpectedly. While a retained executive search firm was engaged to identify potential candidates, the Board quickly realized they needed specialized expertise in executive compensation to move the process forward. The company had never previously gone through a structured CEO compensation design, and Board members had differing views on what the package should include. They needed:
A competitive, market-driven compensation package to attract the caliber of executive required to lead the company.
A clear framework to balance fairness, affordability, and long-term sustainability.
Alignment across the Board to ensure that the compensation strategy reflected the company’s values and priorities.
Contract language that would protect both the company and the incoming CEO.
Adding to the challenge was the need for a quick turnaround; delays risked losing top candidates and stalling momentum in the CEO search.
Solution
NB Business Solutions was engaged to bring clarity, data, and structure to the process. Our team worked closely with the Board to design a tailored approach that addressed both the immediate hiring need and the company’s long-term executive compensation philosophy.
Compensation Benchmarking: We researched and analyzed multiple reliable data sources to identify current market norms for CEO pay in comparable organizations. This included base salary, short-term incentives, long-term incentives, and executive benefits.
Board Collaboration: We facilitated discussions with the Board to align priorities, clarify what elements were most important to attract strong candidates, and determine what was financially responsible for the business.
Package Development: Using the research and Board input, we crafted a comprehensive compensation program. The package included:
A competitive base salary
A performance-based annual bonus
A long-term incentive plan that included key performance metrics across the portfolio to support retention and strategic focus
Executive-level benefits and perquisites aligned with market practices
Contract Assistance: We provided direct support in structuring the executive contract, ensuring compensation terms were clearly articulated, compliant, and equitable.
Through this collaborative process, the Board gained confidence in both the competitiveness and affordability of the package.
Result
In just one month, we delivered a complete, customized, and Board-approved compensation package for the incoming CEO. The package struck the right balance between market competitiveness, financial responsibility, and Board alignment. The selected CEO candidate was presented with the offer and accepted. The company was able to:
Secure a highly qualified leader on time.
Strengthen trust and alignment among Board members around executive pay practices.
Establish a clear framework for future executive compensation decisions.
This successful outcome not only filled a critical leadership gap but also positioned the family-owned business for stability and long-term growth under new leadership.