Long term incentives - where should we take them?
Date:
13th September 2012, 16.00 -19.00
Venue:
Trinity House
Research Report & Symposium:
Speakers to be announced during 2012
Map:
Click here to view a map of the venue.
The Issue:
Our research will update and develop current thinking on LTIs and the executive package, including aspects of wealth distribution, motivation and communication.
Pay analyses reported in the press cite large increases in total direct pay and contrast this with stagnant long term share prices and the far more modest increases in pay (or pay freezes) that apply to most employees. At the same time, the long term incentives that drive the majority of the executive package often fail to excite the wider executive population to whom they apply.
Originally intended as a way for executives to participate in the gains received by shareholders (share options), then as a way of rewarding only those who outperform (performance shares), are LTIs migrating to something new? How do listed and private company LTIs compare across major territories including the emerging economies? Why is it so hard to communicate executive pay plans and outcomes? Can anything be done about this?
We aim to step back and to consider a wide range of views from informed parties - our members, academics, pay consultants, shareholder organisations and government. From these conversations we will develop our conclusions and recommendations and build a stimulating meeting around their discussion.
Content:
- The current context;
- Should LTIs motivate or are they primarily about wealth distribution? Are they reward for outperformance or for doing the job?
- What is emerging practice? Does it differ around the world?
- How do LTIs relate to STIs? Is there a need for segmentation across key populations within the organisation?
- How well are LTIs understood? Are there better ways of communicating them?
- Measurement issues. How practical are specific long-term targets? What is the role of judgement?
An invitation to this meeting will be forwarded to members in due course. In the meantime, please contact Eva John-Lewis on eva@parcentre.co.uk with any questions or queries.