Challenge: Our client needed to redesign their current long-term incentive plans to better promote and foster alignment of long-term financial interests between management and shareholders. They wanted to sunset their existing plans and have one simplified, easy to understand plan. They wanted the new plan to incent long-term growth and teamwork, and be directly related to key business metrics.
It was important to them to promote a team environment for decision making, showcase leadership in technology, and capitalize on current market opportunities through the achievement of certification of parts supplied to a global aerospace manufacturer. A newly designed plan also needed to include measurable and achievable performance measures and have a simplified plan design and documents so that it could be easily understood.
Solution Deployed: Recommendations were developed to better align the long-term incentive plan with the goals, vision, and financial growth of the organization. The new plan was designed to incent and reward participants for achievement and over-achievement of goals reached. Plan design and documents were simplified, and terms related to product cancellations were updated to reflect current industry standards.
Business Value Delivered: The executive team felt confident that the new plan design would help them achieve their goals and drive business results. They remarked that they liked the simplicity of the plan as it was easy to understand, measure and track. They are currently working on a communication, implementation, and roll-out plan to share this update with their team.
Client Industry: Aerospace Manufacturing, Technology
Project Type: Long-Term Incentive Plan Design, Change Management, Strategic Communication
Business Structure: For-Profit, Privately Held