A clear linkage between pay and value creation enhances trust among employees and stakeholders and fosters a culture of ownership, entrepreneurship, and performance excellence. Our approach ensures managers are rewarded for efficient capital use, encouraging smarter investments and cost control.
We align employee and executive compensation with long-term value creation establishing a direct link between individual contributions and enterprise success measured by profit, economic profit or total shareholder return.
We define the philosophy and purpose of value-based compensation, align incentives with owner strategy and value creation goals, decide between cash-based vs. equity-based models. Furthermore, we design profit-sharing formulas or economic profit-based bonuses, develop equity or phantom equity participation schemes, structure performance hurdles and vesting mechanics), balance short-term and long-term incentives (STI/LTI mix).
We define the appropriate ambition level of KPIs used in incentive plans based on our Outside-in-target setting model, analysis incentive plan payouts under multiple business scenarios, simulate value creation thresholds and stakeholder returns and stress-test plan sustainability and alignment with cash flows.
We develop investor-ready narratives around business model and value drivers, align external reporting with capital market expectations, support earnings calls, investor decks, or annual reports with compelling storytelling.
Three key questions to address when challenging the appropriateness of LTIPs within the annual review.
What are effective measures to implement «Skin in the Game»?
Three key questions to address when challenging the appropriateness of LTIPs within the annual review.
What are effective measures to implement «Skin in the Game»?
Three key questions to address when challenging the appropriateness of LTIPs within the annual review.
What are effective measures to implement «Skin in the Game»?
