The compensation packages offered to executives of a target company should be a key consideration for acquirers. "People want to know early in the game what's in it for them and
whether they will have the potential in the new compensation scheme to
make what they think they should,"
writes Jack Dolmat-Connell, president of the compensation consulting firm
Dolmat Connell & Partners, in the latest
Corporate Dealmaker.
Unfortunately, figuring out what to pay those executives isn't easy. Acquirers need to compare the two compensation systems, says Dolmat-Connell, determine post-close executive payouts, be aware of any change-in-control provisions that could trigger a big payout for critical employees and a whole lot more. But, as Dolmat-Connell says, getting the offer right -- or at least in the ball park -- early in the deal cycle can greatly increase the odds of retaining key talent post-close.
- Suzanne Stevens
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