Emerging Executive
As you climb the corporate ladder, life gets more complex.
Compensation, benefits and the decisions you make become more complicated as your career advances. What’s the best next move for you and your family? Having a partner to clear through all the noise makes decisions easier so you can focus on what matters most.
Background
As a rising pharmaceutical sales executive whose career was consistently on the rise, our client was presented an opportunity to leave direct sales behind and lead a newly launched division.
The change not only meant moving to another area of the state, but that he would receive a new compensation model with some of his current benefits not transitioning to the new role. Was it the right time and right move for our client? We helped him decide, on his terms.
Key Concerns
- Taking the position meant moving to another, higher cost area of the state.
- Moving meant selling their personal residence at a less than optimal time or leaving them with the added expense of having multiple mortgages.
- Due to the quick timeline, our client could have a period of upheaval for both his job and his family living in two locations.
- Moving would uproot middle and high school aged children and distance them from friends at a critical juncture in their lives. It would also require private schooling due to a lack of local public schools in the new city.
- The new compensation model would be closely aligned with our client’s ability to launch the new product line. If FDA approval was held up or other barriers occurred, his personal income could take a direct hit and impact his personal goals.
- Was our client ready to transition to a management position which could require him to work more and be less present for key events in his kids’ lives.
Client Priorities
- Compensation & opportunity analysis – Compare the compensation structure, benefits, and resulting tax changes between his current and new position to answer the looming question – was it financially ‘worth it’.
- Risk Mitigation – Evaluate and mitigate the long-term financial impact on our client and his family necessitated by the quick timing of the start date.
- Budgeting – Determine if the compensation from the new position offset the increase in costs resulting from private school and potentially carrying two mortgages for a period of time.
- Benefits – Changing divisions would trigger changes in retirement funding that our client was currently receiving. How does this impact the funding of his future retirement plans?
- Family Impact – Weigh the true impact of moving the family at this critical time in the kids’ lives.
The Results
Establishing a plan that balances family and career
- Our team compared current and new compensation and benefit details to provide an analysis that allowed our client clearly assess the true value of the opportunity.
- We compiled research on the real estate market to assess availability of homes in our client’s price range in the new community along with sales estimates for their existing home. We provided a cost/benefit report so our client could review the financial impact of quickly moving to a new city and assessed both the short and long-term impact of this decision.
- We evaluated the cost associated with placing his kids in private school. We also provided multiple scenarios on transitioning to new schools immediately or over time so he could make an informed and educated decision.
- Moving to the new division triggered a change from a fully funded pension plan to a 401(k) plan for our client. We evaluated the impact of both plans and anticipated funding against his retirement plans to break it down into a dollar-for-dollar comparison of his options.
- Our team was a partner throughout this process. We discussed all the potential changes and possibilities in both scenarios. By removing the financial aspect from the equation, the conversation could focus on additional stressors the family was likely to face, including impacts to the children’s education, sports and other activities to help them assess whether this opportunity was truly right for them and their family.
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We understand how to navigate the complexities of being an executive because we've faced it first-hand
