Management Remuneration and Incentive Schemes
For shareholders and sellers of companies, the crucial success criterion is normally an increase in the company's market value, which is heavily impacted by the decisions made by senior employees.
Challenges may arise in connection with a company transfer, especially late in the process, as the management may have an incentive to serve the buyer's future interests rather than the interests of the seller.
This challenge can be addressed by introducing the right remuneration strategies and incentive schemes in the company prior to the initiation of a sale process. For example, through offering share-based payment to the management, a future seller can ensure that senior employees will be interested in obtaining the highest possible price for the company for the seller, and thus will carry on looking after the seller's interests right up to closing. We have extensive experience in preparing incentive schemes and remuneration strategies.
Our advisory services cover, for example:
- Warrants
- Share options
- Bonus agreements
- Remuneration policies
- Incentive schemes