Variable Remuneration System Design

VARIABLE REMUNERATION SYSTEMS DESIGN

Design of a Long-Term Variable Remuneration Plan for Executives.

Client
Multinational Group, leader in the search and selection of Professionals, present on all 5 continents.

Description of the Case
Define a long-term variable remuneration mechanism for Executives, with the aim of strengthening the commitment of key staff to the most critical goals from its Strategic Plan for the next five years, as well as their loyalty, so that the incentive is attractive to those who have contributed to the Company’s growth and consolidation over all these years.

Activities carried out
The project was developed around 5 Milestones:

  • Goals to be met with the plan.
  • Parameters which modulate individual perception (goals).
  • Goal amounts, assigned to each beneficiary.
  • Payment mechanism.
  • Formalisation of the selected mechanism, incorporating legal and tax implications  (for the Executive) and accounting obligations (for the Company) in each of the Countries.
Results obtained
Guide long-term management priorities, align Shareholder and Executive interests and Key Staff retention, by using the tax advantages of specific payment mechanisms.

Overall Remuneration Structure

OVERALL REMUNERATION STRUCTURE

Definition of Remuneration Policy.

Client
Leading Property Group in the National office and business park rental market.

Description of the Case
Perform a Diagnosis of the Group’s Remuneration System and offer conclusions and recommendations that would help Management to define a New Remuneration Policy.

Activities carried out
The project was developed in 3 Phases:

  • Evaluation of the Jobs in the Structure, with the aim of obtaining a reliable salary parameter for comparison with the Market.
  • Analysis of Internal Equity (overall and by Area or Companies) and External Competitiveness (vs. Market), for monetary and non-monetary salary components.
  • Recommendations on Salary Policy according to the conclusions from the Study, with specific reference to: Groups which can / must receive different treatment, Fixed Monetary Remuneration amounts, Variable Monetary Remuneration Components and amounts, Deferred Remuneration and Remuneration in Kind Components.
Results obtained
A new equitable and competitive Remuneration Policy for all Groups, in line with the strategy and Business priorities.