Pretium Incentive Practices Survey

With more widespread use of share based incentives in Greater China, incentives have become the key pivot in driving total compensation. Many companies are buying back shares and realigning incentive plans to cope with the new normal. Are you encountering the following situation(s)?

How to determine the total incentive pool? How to cut the cake?
How to structure short-term incentive and long-term incentive in the total compensation package?
Incentive plans that are inherited from headquarters do not reflect the local situation
Incentive plans that were designed some time ago do not align with current business strategies and market trends

Pretium Incentive Practices Survey focuses on the key features of different incentive plans and provides market practices to increase competitive edge. The survey focuses on the following 3 areas:

Pretium Solutions

Short-Term Incentive Plan Design and Review

Long-Term Incentive Design and Review

The survey mainly focuses on the following 3 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 for a copy of the sample report, questionnaire and benchmark list.

Please contact us at
info@pretium-asia.com;
or call us at +852 3996 7868