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Short and Long-Term Incentive Plan Design

Short and Long-Term Incentive Plan Design

Alliance Compensation designs cash and equity incentive plans that focus employees and executives on organizational, strategic and financial goals which drive performance and improve your bottom line. There are many decision points to consider.

Companies seek assistance with Incentive Plan Design because:

  • Cash and equity used as incentives can have a tremendous positive leverage on performance and productivity
  • It’s important to know what options are available (such as profit-sharing, gainsharing, etc.) and which to choose
  • Although cash is important, incentives drive behaviors
  • Determining incentive levels and amounts are difficult without data and analysis

Our experience with Incentive Plan Design includes:

  • Establishing design philosophy and principles with stakeholders
  • Selecting the right equity vehicles and achieving the desired tax treatment
  • Determining share usage and equity grant allocation
  • Creating broad-based plans with distribution modeling
  • Analyzing income and balance sheet impact
  • Complying with regulatory requirements and recommendations from proxy advisory firms

Getting the design of such plans right is critical to ensure they effectively drive desired performance and results.