Remuneration committee advice
Modern corporate governance guidelines encourage remuneration committees to seek impartial and independent advice on executive compensation issues. We are often asked to provide an advisory and support service to remuneration committees on issues such as market practice, trends in executive compensation, equity incentive valuation and investor communication.
Reward strategy development
Do your people know what is expected of them? Are their incentives motivating? We are skilled at developing remuneration principles, practices and plans appropriate to each client.
Incentive compensation design
A well designed incentive plan can be a source of competitive advantage. Our consultants have worked with 40 of the FTSE100 to design and implement short-and long-term incentive programmes that reinforce business strategy and reflect each
organisation's culture and capabilities. Our consultants have been responsible for some of the most effective plans implemented for top executive, management
teams, sales teams and investment executives. We also provide remuneration framework and incentive design support to companies looking to IPO.
Incentives for business units and private companies
The objective measurement of value creation presents particular challenges for businesses without a quoted share price. We have helped numerous private companies and divisions of public companies address issues such as performance measure selection, cash-out mechanisms, and real or phantom equity plans.
Incentive plan implementation support
Effective implementation is critical to an incentive plan’s success. We prepare communication materials and manage the implementation process, either as part of a complete design and implementation assignment or as a stand-alone service. We provide objective advice and a wealth of implementation experience. It has a strong track record of gaining investor approval for new incentive plans.
Reward strategy to support M&A success
Capital transactions often lead to the creation or destruction of significant amounts of value. At such times, the alignment of the interests of managers and shareholders is paramount. Our consultants have designed incentives to support equity carve-outs, demergers, mergers and acquisitions across a wide range of industries. Results include the maximisation of transaction value, improved retention of executives during ownership changes, and faster integration of management teams.
Performance measure selection and customisation
Our performance measurement service helps develop and/or refine the scorecard with which to track the progress of strategy implementation and measure the creation of value across an organisation. Our performance measurement service begins by identifying what drives value creation within each
client organisation. We capture the strategy in a balance set of appropriate measures, taking into account factors such as information availability, simplicity and cultural considerations.
Balanced scorecard design
A Balanced Scorecard can be used to translate a company’s mission and strategy into a coherent set of objectives and measures. We help companies develop scorecards that balance financial and non-financial measures, lead and lag measures etc., helping companies to communicate, monitor and drive their strategy.
Stretching but achievable targets balance the top-down expectations of shareholders with bottom-up plans of management. We help companies calibrate "good", "excellent" and "outstanding" performance across all businesses and measures. Leading-edge techniques are developed and applied to translate shareholder value objectives into financial and non-financial goals. The result is credible goals and benchmarks at group, business unit and individual levels that are aligned with your business strategy and objectives.
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VALUE BASED MANAGEMENT
Value driver identification
The identification of value drivers makes corporate strategy tangible and helps people understand what is expected of them. We work with companies to identify and quantify the impact of key value creating activities. We use executive interviews, workshops, forecasting, scenario analysis, conjoint (trade-off) and correlation analysis to clarify a company’s value agenda by identifying and prioritising top value creation opportunities.
Value based management (VBM) training
Management training is a critical stage in the successful implementation of VBM. We provide training in the concepts and application of VBM, accelerating implementation and helping avoid common pitfalls. We have a wide range of materials that can be tailored to meet your requirements.
VBM reviews and implementation support
VBM has been implemented successfully only when all decisions are aligned with creating value. We have a deep understanding of how VBM principles can be effectively embedded into core management processes, and has helped many companies move from value awareness to full value accountability.