Managing (Formerly) High Ranking People

I'm in an organization where it is not uncommon to have someone on your staff that used to have a high ranking position at another company. These are good folks who's rank changed due to the move, difference in size of company, etc. For example: there are senior managers with people on staff who's last rank/role was director. It is not unheard of to have 'retired' VPs around - retire from one industry and make a jump to another. I find this awkward when it comes to employee development and coaching, also when considering compensation strategies. Any best practices out there?