Install best-in-class private company long-term incentive awards that help drive performance even under conditions of acute talent shortages.
Long-term incentive design in a private company is difficult. Private companies often have unusual entity structures, and without liquid equity, it can be very difficult to make any form of equity compensation valuable to those receiving it. Furthermore, there are important decisions, such as whether to award true equity or phantom equity and how to structure metrics and payout terms. Perhaps long-term equity isn’t even the right answer.
We’re here to help you sort through these very important questions. We focus on private companies preparing to eventually go public, specifically by helping to professionalize their equity granting policies, share pool management, instrument design, and participant communications.
How We Help
Our services include the following:
- Evaluate the pros and cons of phantom equity and true equity
- Evaluate various performance metrics in light of the organization’s long-term strategic plan and human capital strengths and gaps
- Model the pro forma cost of any long-term incentive instrument and the corresponding implications on cash and financial accounting
- Present a menu of potential long-term incentive instrument alternatives and the accompanying pros and cons of each
- Assist with the rollout and implementation, focusing on engagement and buy-in from participants and ways of keeping the LTI instrument top of mind
Implement a new performance program to drive greater alignment and buy-in to the long-term strategic plan.
