August 14th 2019

Member Query – M&A Recognition Bonus

A member has asked the following re: M&A recognition bonuses

They are currently investigating market practice for recognising key employees (outside of the normal reward cycle) who have been actively involved in achieving either a successful acquisition or disposal.

Q1. Do you apply a form of recognition (outside of normal reward cycle) to key employees engaged in an M&A transaction process?

  1. If you do what form (e.g. cash bonus, shares etc) and value (e.g. % of base salary, % of transaction value) is the recognition and at what point would you make the award (e.g. deal close etc)?
  2. If you don’t is there any specific reason why not?

Q2. Do you apply a form of recognition (outside of normal reward cycle) to key employees engaged in an M&A integration process?

  1. If you do what form (e.g. cash bonus, shares etc) and value (e.g. % of base salary) is the recognition and at what point would you make the award (e.g. 6 or 12 months post deal close etc)?
  2. If you don’t is there any specific reason why not?

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If you are not a member of the PARC network and are interested in membership please contact Richard Hargreaves, Commercial Director, on +44 (0) 20 3457 2630 or at richard@parcentre.co.uk.

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