Sponsored by the 4A’s Large Agency & Media Service Agency Finance Committees
The 4A’s Compensation Summit videos incorporate a series of seventeen recordings from the “How to Get Paid What You Are Worth—Now” thought leader conference.
Agency Compensation Is a Significant Industry Challenge.
Client requirements for premier agency services have never been greater, but the compensation that clients expect to pay agencies is nevertheless under intense pressure. The industry compensation challenge is ubiquitous; in fact, most agency executives face the same compensation challenges that you do. In order to facilitate inter-agency discussion and sharing of compensation best practices, a 4A's compensation task force hosted an executive level summit to provide agency management with strategic information to deal with clients and their procurement groups.
How to Get Paid What You Are Worth—Now! Summit
The 4A’s “How to Get Paid What You Are Worth—Now” Summit features industry leaders from the major agencies and holding companies sharing agency compensation strategies, tools and learning that will help all industry participants.
The program for the “How to Get Paid What You Are Worth—Now” Summit features:
- Compensation Challenges and Opportunities
- Negotiating Tactics and Technique
- SOW as a Revenue Driver
- The Truth About Efficiency Metrics (i.e., Overhead, Utilization and Labor Rates)
- The Profit Imperative
- Compensation Myths and Realities
- Performance Incentive Compensation Do's and Don'ts
- Benchmarks—What Matters?
- Key Learning and Best Practices From Top Industry Experts
- ...And a lot more.
Industry Thought Leaders
The summit program included inspirational discussion and strategic guidance from industry thought leaders: Andrew Robertson, CEO, BBDO Worldwide; John Seifert, Chairman & CEO of Ogilvy North America; Tom Bernardin, Chairman & CEO, Leo Burnett Worldwide; Chuck Porter, Chairman, CP+B, Lee Clow, Global Director Media Arts, TBWA\Worldwide; Nancy Hill, President-CEO, 4A’s; Susan Gianinno, Chairman & CEO of Publicis; Tom Carroll, President & CEO, TBWA; and Miles Young, CEO, Ogilvy Worldwide.
Industry Finance and Operations Experts
The summit program provided in-depth information about agency financial drivers and guidance on compensation best practices from industry finance and operations experts: John Broe, VP, Partnership Development CP+B; Rick Weber, EVP, CFO, Draftfcb North America; Linda Wu, COO, Draftfcb; Darren Norkett, CFO, Leo Burnett NA; Rick Brook, SVP, Global Client Operations, WPP; Dana Perry, EVP, CFO, BBDO NY; Skip Long, President, New Ventures, Leo Burnett NA; Neal Grossman, COO, TBWA\Chiat\Day LA; Eric Lear, Partner/COO, CP+B; Mike Byrne, CFO, JWT New York; Mark Goldstein, Vice Chairman, BBDO Worldwide; Steve Goldstein, EVP and CFO, O&M Worldwide; Laurie Coots, CMO, TBWA Worldwide; Ali Belgaumi, EVP/CFO, Publicis USA; Brian Quirke, CFO North America, DDB Worldwide; Jim Baller, Global Head of Client Finance, McCann Worldgroup; Candice Kersh, Partner, Frankfurt, Kurnit, Klien & Selz; and Tom Finneran, EVP, 4A’s.
Who Should View This Video Content
Compensation planning and negotiation is a “team sport” that requires the coordinated involvement of your agency management team.
Industry thought leaders advise agency cross-functional “team” review and discussion of the summit content, i.e., agency business leaders, client service directors, operations, legal and finance executives all must play a role in your agency's client servicing and compensation activities and all should view this summit material.
In This Section
(1) Summit Overview
Tom Finneran, 4A’s Executive Vice President, discusses the industry’s compensation challenges and reviews the "4A’s Agency Compensation Transformation Doctrine—Strategic Pillars" position paper guidance which serves as foundation for much of the summit program’s content.
(2) The Compensation Imperative
Industry icons share their thoughts on “How to Get Paid What You Are Worth—Now”:
- Andrew Robertson, CEO, BBDO Worldwide
- John Seifert, Chairman & CEO of Ogilvy North America
- Tom Bernardin, Chairman & CEO, Leo Burnett Worldwide
- Chuck Porter, Chairman, CP+B
(3) Compensation Overview: Challenges & Opportunities
John Broe, VP, Partnership Development, CP+B provides an overview of the compensation landscape and suggests steps to help agencies get started with the transformation of agency compensation.
(4) Lee Clow: Thoughts on Agency Compensation
Creative icon Lee Clow shares his thoughts on agency compensation and that value that agencies provide by building brands.
(5) Scope of Work—The Revenue Driver
Rick Weber, EVP, CFO, Draftfcb North America and Linda Wu, COO, Draftfcb NY discuss the importance of having a comprehensive scope process and share SOW planning tips and tracking tools.
(6) A Compensation Alternative—Nancy Hill
Nancy Hill, President-CEO, 4A’s shares her thinking about the strategic framework for pricing agency services.
(7) A Compensation Alternative—Susan Gianinno
Susan Gianinno, Chairman & CEO, Publicis suggests an innovative three-tier compensation approach.
(8) Talent and Labor Based Compensation
Darren Norkett, CFO, Leo Burnett North America discusses the importance of monetizing agency talent and avoiding commoditization of labor-based pricing.
(9) Overhead & the Truth About Efficiency Metrics
Rick Brook, SVP, Global Client Operations, WPP identifies myths about efficiency metrics—notably the invalid use of overhead as an efficiency metric. Rick suggests a hierarchy of metrics that are appropriate and should be used in compensation discussions.
(10) Tom Carroll: Thoughts on Agency Compensation
TBWA’s President & CEO Tom Carroll provides a “call-to-action” and urges the industry to become more confident and capable pricers.
(11) The Profit Imperative
Dana Perry, EVP and CFO, BBDO NY emphasizes the importance of being profitable and reminds the industry that profit is not discretionary and that being profitable is essential for our shareholders, employees and clients.
(12) The Myths & Realities of Incentive Compensation
A panel of experts discusses the do’s and don’ts of performance compensation. They share the views on what performance compensation arrangements work and discuss lessons learned and the importance of client motives and culture.
(13) Negotiating Tips & Suggestions
A battle-tested panel of agency pros talks about negotiating compensation and the importance of having a negotiating strategy, internal alignment and an experienced “deal team.” The panelists also share proven tips for reaching mutually beneficial compensation arrangements.
(14) Benchmarks—What Matters?
A cross-industry panel discusses the importance of value-added metrics and cautions against the inappropriate use of metrics that focus primarily on cost rather than on the benefits that clients/brands derive from agency work.
(15) Miles Young: Thoughts on Agency Compensation
Ogilvy’s Worldwide CEO, Miles Young, urges the industry to get back to basics by starting with the client's business goals; taking a team-based approach to compensation; challenging inappropriate client and consultant mandates; and believing in your value proposition and leveraging your precious talent.
(16) Revisiting Agency/Client Agreements: The New Basics
Candice Kersh, Partner at Frankfurt, Kurnit, Klein & Selz, reviews the importance of establishing equitable intellectual property terms, indemnification arrangements and other key contract provisions that are essential to achieving equitable agreement on compensation.
(17) Summit Key Takeaways & Next Steps
Tom Finneran, EVP, 4A’s urges agencies to develop compensation principles, communicate the principles broadly and then adhere to the principles.