Project
CEO Remuneration framework
Project Trigger
To develop a remuneration framework including short term and long-term incentives for select staff.
Our Scope
- To support a management restructure, we develop a model with the facility to enter certain inputs (e.g., base salary; threshold levels; etc.) and see the results on potential short-term incentives (KPIs) and long-term incentive amounts (% of estimated enterprise value).
Project Outcomes
- A model that could be used to develop a renumeration framework including STIs and LTIs
- A model that could then be used to forecast and track staff STIs and LTIs
- A way to motivate staff and retain them on a long-term basis
Our Value
- A crucial tool to attract, retain and motivate staff, which is invaluable particularly in today's tight labour market.
Top 3 Tips
Clients that require Management Renumeration Framework should:
- The key to these models is that they should only apply if the business itself succeeds - i.e., where it is a win-win arrangement.
- It is good to have a mix of short-term incentives to sustain interest, as well as a sizeable long-term goal, to ensure staff do not go elsewhere.
- While there may be need for some complexity to balance the various types of incentive, it is important to make the model easy to understand. To that end, often Active Directions will not only support with the development of the model itself, but also a supporting pack and process to take participants through the plan. Engagement is key!
