How should a large company compensate its executives? It sounds like an easy question. However, since the Great Recession of 2008 it is an issue that can gain companies unwanted attention.
One company that can advise businesses on the issues of executive compensation and assist in creating compensation policies that don’t raise a red flag with the government or the public is James F. Reda & Associates, a division of Gallagher Benefit Services, Inc. Started in 2004 with offices in New York City and Alpharetta, Georgia, James F. Reda’s principal consultants have more than 50 years of combined experience providing compensation advice. In 2009, the company was ranked as one of the top independent executive compensation firms in the country. The company’s staff is well versed in such issues as non-compete valuations, option exchanges, and valuation of consulting agreements involving equity grants and assessments of relative company performance. It also is very competent on such issues as 280G analyses, equity valuation, ISS Compass modeling, Risk Metrics/ISS Performance versus pay analysis, Monte Carlo simulation, and 162(m) analysis.
James Reda is the founder and Managing Director of the firm. He has more than 23 years of experience in the field of senior executive compensation. He is known for working with public and private organizations in planning, creating, and implementing incentive programs. He advises companies on such issues as incentive strategy, shareholder rights, and corporate governance issues. Reda is known as an expert in the field and has authored a number of articles and research papers that appear on the company website, as well as two books – Pay to Win: How America’s Successful Companies Pay Their Executives and The Compensation Committee Handbook. Reda earned a Bachelors of Science degree in Industrial Engineering from Columbia University and a Masters of Science degree in Management from the Sloan School of Management of the Massachusetts Institute of Technology.
Kimberly Glass is a principal of the company. She has more than 13 years of experience in the discipline of executive compensation. She has consulted with clients in a wide range of industries including manufacturing, service, pharmaceutical, retail, and utilities. She is skilled in many areas of executive compensation including competitive benchmarking; cash and equity incentive program design; compensation disclosures, including issues related to the CD&A and required tables; outside director compensation strategy and design; change-in-control and general severance design; and Board and Compensation Committee governance. She holds a degree from the University of Virginia and was a Certified Public Accountant at Arthur Andersen & Company before joining Reda.
David Schmidt is a senior consultant. He has more than 20 years of experience and is extremely knowledgeable in economics, sales management, and customer research. His expertise includes valuation of stock-based compensation arrangements, review of senior executive compensation packages, modeling for FAS 123R purposes, and the design of special situation incentives and change-in-control programs. He was Vice President of Sales Operations at Peterson’s, a division of the Thomson Corporation; and was Vice President of Marketing Services at McGraw-Hill Companies prior to joining Reda. He earned a Bachelors of Science degree in mathematics and a Masters of Arts degree in economics from Western Illinois University.
Adriana Munoz is a compensation analyst for James F. Reda & Associates. She has worked in a number of projects while working at Reda including the Fortune 100 Change-in-Control study, executive and outside director pay analyses, and performance/payout modeling for incentive plans. Prior to joining Reda she worked at the Intergovernmental Group of Twenty-Four for the International Monetary Affairs and Development (G24) in Washington, D.C. She earned a Masters in Business Administration in Finance from St. John’s University and a Bachelors of Arts degree in International Relations from Central University in Caracas, Venezuela.
James F. Reda & Associates offers services in total compensation and corporate governance advice.
The total compensation services include:
- · Executive compensation benchmarking
- · Short- and long-term incentive plan design
- · Equity pay strategies
- · Change-in-control and severance analysis
- · Executive benefits and perquisites
- · Employment contracts
- · Performance measurement and goal analysis
- · Broad-based employee compensation benchmarking
- · Pay issues related to IPOs, mergers, spin-offs, and asset sales
- · Tax, accounting and disclosure guidance
- · Valuations of equity, retirement, and non-compete arrangements.
Corporate Governance Advice includes:
- · Compensation Committee Advisory Services
- · Proxy Disclosure
- · Board of Directors Compensation
- · Board and CEO Performance Evaluation Services
The company also assists law firms on executive compensation for expert witness testimony and litigation support. It claims to be a qualified expert in federal and state courts, IRS proceedings, and arbitration.
Expert Witness Services include:
- · Employment agreements
- · Severance arrangements
- · Reasonableness of compensation levels
- · Valuation of stock awards and employment restrictions
- · Cash incentive arrangements
- · Expected career earnings
- · Compensation Committee process and independence of members
- · Appropriate performance measures and payouts
James F. Reda & Associates has worked with more than 100 companies including Fortune 500 businesses in several trades. Its client list includes:
- · UPS
- · Lev Pharmaceuticals
- · Prudential
- · Pfizer
- · International Paper
- · JC Penney
- · Goldman Sachs
- · Bed Bath & Beyond
- · Primerica
- · Take Two Interactive
- · Entergy
- · Milliken
For more details about James F. Reda & Associates and the services it offers visit the company’s website.