Pretium Incentive Practices Survey

As regulatory complexity and talent competition increase, aligning incentives with both short- and long-term performance and risk management becomes essential. Our Incentive Practices Survey offers data-driven insights and a roadmap to help you build a more resilient, competitive, and accountable organization. 

The Survey provides critical insights to:

 1.       Dynamic Incentive Adjustments

  • Leverage data on dynamic incentive adjustments, clawback mechanisms, and risk reserves to mitigate the risks against market fluctuations while motivating your team.

 2.      Innovative Bonus Structures 

  • Compare innovative approaches to bonuses, long-term incentive structures, deferrals, and vesting, including tailored models for material risk takers.

 3.      Long-term Value Creation

  • Move beyond short-term metrics with proven models that balance performance, risk, and long-term value creation.

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. 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