M&A Compensation Design & Retention

A multinational manufacturing company acquired a Canadian corporation's business division to expand into the North American market. The acquired business operates as a standalone subsidiary.

Industrials

Industry

$1B

Acquisition

1K+

Employees

KEY CHALLENGES

Cultural Differences

Significant structural and program disparities between the parent company and the Canadian division.

Retention Risks

Senior management is needed for business continuity of the newly acquired Canadian division.

Compensation Misalignment

Existing long-term incentive awards and defined benefit pension plans were not replicable in the go-forward organization.

APPROACH

Led stakeholder discussions with the parent company and acquired Canadian division's current and future executives.

Identified and prioritized key employees for retention.

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Designed a competitive compensation framework aligning parent company objectives with North American market standards.

Transitioned employees from a defined benefit pension plan to a registered pension plan and a Supplemental Executive Retirement Plan, mitigating financial impacts for employees with legal and tax support.

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Assisted in negotiating new and retentive packages for key executives.

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OUTCOME

A tailored compensation strategy that retained key talent, aligned with shareholder value, and ensured a smooth transition for the newly acquired division's leadership team.

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KEY OFFERINGS

M&A Support, Pay Philosophy & Strategy, Market Compensation Benchmarking, Performance & Incentives

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