Pretium Incentive Practices Survey
How to design Incentive Programs that balance performance motivation with risk management?
In an era of heightened regulatory scrutiny and intensified talent competition, organizations face mounting pressure to create incentive frameworks that drive results while ensuring sustainable governance. Companies must now navigate evolving compliance requirements while keeping key contributors engaged through market-competitive reward structures.
Pretium Incentive Practices Survey
This survey examines key features of various incentive plans and provides market insights to strengthen these plans for a competitive edge. The survey focuses on 3 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
Key Benefits
Achieve Dynamic Incentive Management: Implement dynamic adjustment mechanisms including clawbacks and risk reserves to maintain motivation amid market volatility
Access Cutting-Edge Bonus Designs: Gain insights into innovative deferral arrangements, vesting structures, and tailored long-term incentives for key risk-takers
Secure Sustainable Business Growth: Adopt proven frameworks that balance performance measurement with risk management to support long-term value creation
Please contact us at info@pretium-asia.com or call us at +852 3996 7868.