Anyone who has worked for a corporation has probably heard a joke or two at the expense of consultants. To workers in the trenches, consultants sometimes appear to be high-priced temps who take over a conference room, only to emerge months later with advice that executives treat as counsel so wise that it might have been handed down from Mount Olympus. We bet that a couple of executives at Altisource Portfolio Solutions, S.A. (ASPS) don’t share that low opinion, however, since consultants are the reason that they are about to become a lot wealthier.
According to an 8-K filed Monday afternoon, an independent compensation consultant – paid by the company, of course, and we doubt any consultant really forgets who is buttering their bread – gathered “information and data regarding executive compensation within the market in which the Company competes for executive talent.” Based in Luxembourg (but with offices around the globe), Altisource provides services for real estate and mortgage portfolio management, debt collections, and customer relationship management.
After gathering all that information, the consultants turned it over to the board, which then approved the recommendation to give William Shepro, its CEO, a 16% raise, boosting his base salary from $464,376 to $540,000. Kevin J. Wilcox, Altisource’s Chief Administrative Officer and General Counsel, may also want to send the consultants a holiday fruit basket. Thanks to their advice, his base salary shot up 11%, rising from $382,325 to $425,000.
As it turned out, though, double-digit raises weren’t sufficient. The consultants decreed that Shepro’s and Wilcox’s target bonuses should also increase by the same percentages. For Shepro, that meant that his target bonus jumped from $696,564 to $810,000. Meanwhile for Wilcox, the target bonus soared from $382,325 to $425,000.
The company further noted in the filing:
“Under Luxembourg law, compensation is required to be adapted based upon the cost of living index in the Grand Duchy of Luxembourg. The next legal increase is currently scheduled to take effect on October 1, 2012. At this time, the compensation of the named executive officers will be subject to a 2.5% increase. This legal increase is included in the new compensation amounts of the above-named executives and will not be additive.”
The workers in Luxembourg will – no doubt – be grateful for getting their 2.5% raises when October 1 rolls around. After all, any raise is better than no raise. But for Shepro and Wilcox, who needs a government-mandated raise when the consultants can give you one instantly, and for several times over what they would have gotten otherwise?
Image source: Human hands with pens at meeting, via Shutterstock
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