How does one go about making a 5 million dollar difference using a disclosure research solution? Some may argue it’s all about perspective.
When does an investment in disclosure research software become worth it?
Is it when a tool causes your boss to smile and raise a glass? Is it when the coveted executive talent signs the dotted line? Is it when your company’s market share skyrockets beyond your competitor? Is it a combination of all of the above?
One Certent DisclosureNet user realized his investment was worth it when he saved his client $5 million in bonus payments using our disclosure research tool. You can do a lot of things with $5 million.
While we talk quite frequently about the benefits of benchmarking financial reports, precedents and using peer comparisons to your advantage, this is a prime example of these practices and resulting benefits in action.
Damian Yu, a principle at Hugessen Consulting, saved a client as much as $5 million in potential bonuses by using DisclosureNet to efficiently source precedents and benchmarks in public filings, proving the lucrative benefit of practicing regular peer comparison research (not to mention, the ROI on an astute disclosure research solution.)
When asked to make decisions on executive pay levels, bonuses, incentives, stock options, etc., the analysis of several peer and competitor documents is essential, both to recognize comparable market cases and to benchmark executive compensation trends at peer companies. In Yu’s case, after being approached by a Board to consult on an executive compensation issue, he leveraged DisclosureNet to perform a thorough peer comparison.
He discovered that for this particular case the “market practice among companies in similar circumstances was to offer modest bonuses.” After reporting this keen insight back to the Board, they took Yu’s advice; the Board reconfigured the bonuses using a new formula between one and five million dollars less than the original bonus proposal.
Time saved. Money saved. Client happy.
Read the full story here to see how you too can make a material impact on your business with the right SEC filing research solution.