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A long-term incentive scheme measures performance for over 1 year, and typically includes share schemes, EVA, and rolling cash-based schemes.
Strategic advantages of a long-term incentive scheme:
- Aligning executives interests with those of the shareholders
- Encouraging executives to maximise long-term shareholder value (if the design of equity vehicles is appropriate) inter alia by facilitating share ownership for executives
- Acting as an attraction and retention vehicle for top skills
- Necessity to provide market related compensation
21st Century has assisted leading organisations in both the review and design of incentives, whether short-term or long-term. In the process, we incorporate best practice, market trends, and your own unique drivers for the implementation of a scheme. We have designed schemes for all levels in an organisation, and across a huge range of industries and organisation types. Each scheme is unique to the specific purposes and context of each organisation.
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