Executive Long-Term Incentive Plan Design
Share-based long-term incentive plans are another key feature of the executive pay landscape and one that attracts considerable debate.
We advise on the design and implementation of all types of long-term incentive plan which can take the form of traditional share options, conditional allocations of ‘free’ shares which vest depending on company performance under a Performance Share Plan, or a Share Matching Plan, where executives invest a bonus in shares and receive extra shares from the company, usually based on performance.
Long-term incentives should not be designed in a vacuum but must, instead, take full account of the Company’s particular circumstances. For example, we advised Cairn Energy on the redesign of its long-term incentive policy following the hive-off of its Indian business.