Does your Long Term Incentive plan drive business performance?

An effective Long Term Incentive plan can be a powerful driver of business performance, strengthen commitment to your organisation and give your business an edge when recruiting talented high performers.

Developing the right plan for your business can be difficult. Reliably anticipating the wide range of internal and external factors that will influence executive and business performance, determining the most appropriate metrics to measure success, deciding who should be eligible to participate and what form the reward will take, should all be considered.

As specialists in LTI plan design, our expertise lies in helping our clients answer these questions in order to tailor a plan unique to each organisation. Our consultants have extensive experience in working with both privately held and publicly listed companies, using an approach based on strengthening the alignment of pay with performance, corporate strategy, organisational culture and values, governance principles and shareholder interests. Through this approach we create LTI plans that:

• Provide a balance between fixed and variable pay, with appropriate short and long-term performance hurdles and objectives

• Reward participants for their ongoing contribution to organisational success with a transparent and easily understood plan, where feedback can be easily sought and communicated

• Support the organisation’s values, ensuring that the structure and the performance measures drive the “right” behaviours

• Provide a reward structure that is market competitive and sufficient to attract and retain high calibre personnel

• Promote an ownership mindset amongst participants