Mutual Savings Bank

• Assessed the Trustee Compensation program and recommended changes
• Developed, working with management, a bank-wide job evaluation program including job grades and salary ranges for all positions, and a process to enable the bank to maintain the program
• Assessment of the Chief Executive Officer's pay program for the Compensation Committee including appropriate program recommendations
• Assessment and recommendations for the senior executive positions for use by the CEO in setting competitive pay levels

Publicly Held Developmental Stage Technical Company

Effective Pay Practices assisted the company with a complete assessment and redesign of the total cash compensation program. As part of the project, salary ranges were established to reflect the current situation as well as for the projected organization assuming explosive growth. This enabled the company to plan for the changes to the compensation program that were expected to be required in the near future.

In addition, the cash incentive and equity-based incentive plans were rebuilt.

Other assistance included a comprehensive review of the compensation program for the Board of Directors, and the performance planning process to support the incentive plans.

Mutual Holding Company

• Worked with the MHC to develop a compensation strategy that would encompass the various business segments (banking, insurance, investments, financial planning)
• Assessed the cash compensation program for the CEO and developed:
  • recommendations for managing base salary
  • an annual incentive plan that generates, if earned, awards based on overall company financial performance (banking, insurance, etc.)
  • a long-term cash incentive plan that triggers awards, if earned, based on the accomplishment of critical longer-term objectives (e.g., mergers/acquisitions). In some respects this program is a substitute for equity-based programs that can be offered by stock banks and is intended to provide for competitiveness in a highly aggressive banking region/environment
• Worked with the CEO and Compensation Committee to develop performance measures for the two incentive plans
• Worked with the Compensation Committee on governance issues and developed a compensation committee charter to include mission, activities, responsibilities and a time schedule

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Privately Held Service Company

Over the years, Effective Pay Practices has developed an executive and non-employee director cash compensation program to include the organization's pay strategy, guidelines for managing base pay, an annual incentive program, and a long-term program for both executives and directors.

Effective Pay Practices provides annual assistance to update and maintain the program.

Co-operative Bank

This organization had recently acquired a commercial lending team and to do so had developed a separate incentive plan for the team members. This plan was not integrated with the incentive plan used for the rest of the employees.

Effective Pay Practices worked with the management team to rationalize the incentive programs and met with the Finance Committee to review the recommendations. Upon approval, Effective Pay Practices then met with the full board to explain the new incentive program.

Closely Held Commercial Stock Bank

Effective Pay Practices worked with the Chairman of the Board (not the CEO) to assess the compensation arrangements for the CEO and the Top Financial Officer (#2 position in the bank). This included base compensation, annual incentive compensation, deferred compensation and the supplemental retirement arrangements.

In addition, Effective Pay Practices reviewed the outside Director compensation program and recommended appropriate changes.

The analysis and recommendations were presented to both the Compensation Committee and the Board.

Co-operative Bank

Working with a colleague who assessed the executive benefit program including the supplemental retirement program and deferred compensation, Effective Pay Practices assessed the executive cash compensation program including base salary and incentives and presented the findings and recommendations to the Compensation Committee.

Mutual Savings Bank

Developed, working with the Compensation/Governance Committee and Chief Executive Officer, an annual incentive program which includes all positions in the bank. The performance measures used in this plan flow directly from the bank's strategic and operating plans and are reflective of the roles of the plan participants. Upon approval, Effective Pay Practices prepared all of the communication materials and together with the CEO met with the executive team to explain the plan.