Case Study : Trade sale of a multi-national entity

The Challenge :  A prominent private equity house engaged Egan Associates to assist in the construction of remuneration arrangements for either an IPO or trade sale of an entity with overseas headquarters and operations in Australasia, Europe and North America. 

Starting with the position that remuneration strategies should embrace common principles on a global footing, we advised that the actual implementation of these strategies needed to also reflect local market conditions.

Egan Associates research revealed that annual bonus opportunities were higher in several countries than the norm in Australia.  Accordingly, we presented the client with a set of key decision points for designing a variety of plans for both a trade sale and an IPO. 

These decision points covered:

  • goals for the plans
  • appeal to prospective investors
  • corporate governance compliance
  • affordability
  • ease of communication and explanation
  • the portion of “at risk” reward under both executive and management plans

 The Outcome : The client was equipped with remuneration plans that had global consistency in principle and local competitiveness in practice.  In regards to remuneration design, the client was prepared for the range of sale options it faced.

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