We design specialized annual and long-term incentive plans, including performance and event related incentives. The initial phase of our assignment is to gain a complete understanding of your business structure and performance drivers. Working with you, we then establish performance measures along with associated benchmarks. It is essential that the plan design achieve the following mutual objectives:
- Require meaningful returns to shareholders before any incentives are paid; and
- Require meaningful incentives to participants to continue to attract and retain talent.
The process typically includes:
- Performance Measure and Benchmark selection
- Pro-forma modeling of scenarios
- Impact on the Company (cash-flow, expense, taxes, and balance sheet)
- Impact on the Participants (cash-flow, taxes, and total reward review)