Incentive Plan Structures – We’ve Got You Covered
Participation, performance hurdles, equity instruments, valuation and allocation, and provision of performance monitoring services.
Long Term Incentives are an important component of remuneration for senior executives and key talent in many organisations.
Egan Associates have extensive experience in advising on and designing Long Term Incentives in both private and public companies across all sectors. Our advice includes:
- Determination of award potential and its significance in the overall remuneration framework
- What to grant (for example whether to grant cash or equity and if the latter, what type)
- Performance conditions / hurdles
- Selection of suitable peer group comparison companies for relative performance measures
- Vesting and testing schedules
- Incentive monitoring services to track company performance against market-based targets and determine or verify the percentage of equity that vests to executives
- Valuation of equity instruments via methodologies including Binomial and Black Scholes
- Creation and Documentation of plan rules, resolutions of meeting and letters of offer
- Plan implementation and communication strategies