Searching Pondering Equity-Based Long-Term Incentive Plans on page 5

Because DEI metrics are the most common ESG measure in executive incentive plans, there are crucial implications for large U.S. employers to contend with.

“Transparently communicating the value and potential of equity shares during the interview phase is essential for organizations, especially those planning a near-term IPO,” said Ryan Cameron, senior principal with Mercer.

; ;Should the company switch from equity-based awards to cash-based awards?

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In this case, you can use a hybrid incentive solution with partial payment upfront based on the committed bookings and the remaining payment tied to revenue as the solution is used.; If you have multiple types of deal structures, consider developing a contract classification system (e.g., Tier 1, 2, 3) based on commitment level and revenue realization risk, and link incentive payout practices to those tiers. 2.

Workspan Daily article;Consider Performance Targets for Setting Executive Incentive Goals , Workspan Daily article;Are DEI Metrics in Executive Incentive Plans Gone for Good?

Providing incentive compensation such as retention bonuses, equity awards and performance-based awards is an effective way to keep morale and productivity up during this uncertain time.

;Meanwhile, PSUs and/or RSUs that continue vesting into your CEO’s retirement will help align the CEO’s interests with those of the organization and shareholders for a reasonable time after she retires.; Redefining ‘Long Term’ By definition and design, equity LTI awards are intended to reward long-term performance while supporting shareholder interests.

“The companies that get it right will be the ones that align their workplace policies with long-term engagement rather than short-term compliance,” Scott-Wears said.

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