Do Compensation Consultants Have Distinct Styles?

Compensation consultants strive to signal distinct styles in a positive manner via their own advertising. For example, Towers Watson claims to “bring a unique portfolio of resources” to the table, with an emphasis on aligning board actions with shareholders (e.g., avoiding “say on pay” disputes). [1] Conversely, the media has reported that consulting advice varies little. For example, Towers Perrin was accused in 1997 of giving nearly identical reports on workplace diversity to multiple consulting clients across different industries. [2] Towers Perrin’s response was that all of the clients reported in the article faced similar economic forces and, therefore, received similar advice. [3] Thus, the anecdotal evidence on consultant style is mixed.

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