Pretium Incentive Practices Survey
With the increasing adoption of share-based incentives in Asia, these incentives have become pivotal in driving total compensation. Many companies are engaging in share buybacks and realigning their incentive plans to adapt to the new normal. Are you facing any of the following challenges?
- How do you determine the total incentive pool? How is it distributed?
- How should short-term and long-term incentives be structured within the total compensation package?
- Are incentive plans inherited from headquarters misaligned with local conditions?
- Do outdated incentive plans fail to align with current business strategies and market trends?
The Pretium Incentive Practices Survey examines key features of various incentive plans and provides market insights to strengthen these plans for a competitive edge. The survey focuses on three primary areas:
1. Short-term Incentive (STI) Plan
- Plan Type
- Incentive Funding Approach
- Bonus Payout Ratios
- Median Bonus for Previous Year
- Bonus as a Percentage of Fixed Pay
- Common Key Performance Indicators (KPI)
- Target Setting for KPIs
- Bonus Allocation
- Payment Form and Frequency
- Case Study
2. Deferred Bonus Plan
- Prevalence
- Objectives
- Eligibility
- Deferral Threshold
- Deferral Rate
- Vehicles
- Vesting Schedule
- Upfront Bonus Payment
- Malus and claw-back
- Forfeiture conditions
3. Additional Long-term Incentive (LTI) Plan
- Prevalence
- Objectives
- Eligibility
- Dilution (Overhang) and Run Rate
- Grant Frequency
- Vehicles
- Vesting Schedule
- Key Performance Indicators
- Payout Ranges
- Malus and claw-back
- Forfeiture conditions
- Case Study
Please contact us at info@pretium-asia.com or call us at +852 3996 7868.