Financial advisory firm Alvarez & Marsal (A&M) has decided to enter the HR consulting market. In the US, Alvarez & Marsal recently launched the division ‘Executive Benefits Consulting’, a service line that advises clients on executive compensation, benefit programs and performance management. With the move, Alvarez & Marsal will compete with generalists like the Big Four and HR specialist Aon Hewitt, Hay Group, Mercer and Towers Watson.
Since its founding in 2002, Alvarez & Marsal has focused mainly on restructuring service. The advisory firm gained world fame in the field of restructuring mainly because of the major role it played in Lehman Brothers bankruptcy. With this performance A&M earned more than half a billion. Driven by its exponential growth –grown from 75 employees in 2002 to approximately 1.800 currently- it has over the past years diversified within the financial advisory segment. In this, the advisory firm already has built a track record in, amongst others, corporate finance, merging and acquisitions and forensics.
From New York international expansion
The Executive Benefits Consulting will be based in New York. Albert Schiff, the former CEO of the American firm NYLEX Benefits is nominated Managing Director. In addition, approximately 10 consultants have been hired to give the HR department a kick-start. A spokesperson of Alvarez & Marsal has confirmed that the initial focus will be on the US, although the firm will
actively pursue possibilities to expand its HR consulting services globally.
"Executive compensation is a key issue among investors and regulators," said Bryan Marsal, who became co-CEO of A&M in March, beginning this year. "At the same time, companies must ensure they are able to recruit and retain top leadership talent and encourage management to achieve certain goals. Our new service line Executive Benefits Consulting will help clients manage these two trade-offs".