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Long Term Incentive Plan Design

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  • Review incentive targets and rewards against stated corporate remuneration philosophy and objectives
  • Audit extent of congruence and balance between short and long term objectives
  • Select and or validate measures that are complementary, objective, and verifiable
  • Recommend or verify targets and increments that are achievable
  • Identify most effective vesting/timing of reward, taking into account strategic, business and capital markets cycles
  • Value option alternatives with standard Black Scholes and lattice modelling, researching and validating assumptions
  • Identify most cost effective and efficient form of reward in both an accounting and shareholder value sense
  • Ensure that the plan takes into account both shareholder return and risk/volatility through such things as the LTI mix (e.g. performance units, shares, options)
  • Review organisation capability to administer

 

Contact us for long term incentive plan data, analysis, design or implementation.