Looking for an experienced advisor knowledgeable in all things remuneration and governance? For over 25 years, Egan Associates has advised leading and emerging organisations in Australia and New Zealand. Our services include:
- Remuneration reviews and benchmarking: for CEOs, executives, senior management and professional positions, including specialist roles
- Workforce & Governance: an online HR service that automates position description documentation, job evaluation and pay analytics.
- Annual incentive plan structures: advice on performance criteria, target and maximum payment levels as well as deferral and clawback provisions
- Long term incentive plan structures: advice on participation, performance hurdles, equity instruments, valuation and allocation, as well as provision of performance monitoring services
- Corporate transactions / IPOs: assistance transitioning pre-IPO reward arrangements into the listed company environment (or any other corporate transformation) considering issues including escrow provisions
- Government pay reviews: assistance at federal, state and local level in administrative, policy and corporatised environments on reward for senior executives, professional and administrative staff, and governing Boards
- Board fee reviews: benchmarking Board fee levels, including Chairman and Director retainer fees, Committee Chairman and member fees and fees for adhoc engagements.
- Board effectiveness: assistance with Board reviews, Board skills matrices, scenario planning and Board documentation.
Egan Associates’ analytics team supports all areas of consulting.
Annual remuneration reviews & benchmarking
Seeking to update your remuneration framework, align it with performance outcomes or retain key employees? Drawing on our extensive benchmarking database, we provide recommendations for:
- CEOs, Executives and Key Staff – fixed remuneration, annual incentives, equity-based incentives and retention strategies, including appointment and severance negotiations
- Specialist staff – remuneration structures and quantum necessary to attract and retain key employees
Incentive Structures
Need to better motivate your top employees but can’t decide what incentive plan is best for your organisation? We provide detailed and tailored advice on the design and structure of a range of long term incentives (LTI), short term incentives (STI), retention incentives and project-oriented incentives, including:
- Cash plans;
- Option, performance share or performance rights plans;
- Deferred share or phantom share plans; and
- Salary sacrifice plans allowing participants to purchase shares from pre-tax income and defer tax to a later date (subject to legislative limits).
For annual incentive plans, we provide advice on:
- Determination of award potential and its significance in the overall remuneration framework;
- Selection of performance criteria (KPIs), including gateways and modifiers;
- Weighting of performance criteria;
- Setting of threshold, target and maximum payment levels;
- Performance measurement;
- Exercise of Board discretion; and
- Deferral of payments either as cash or equity.
For long-term incentive plans, our advice covers:
- Determination of award potential and its significance in the overall remuneration framework;
- What to grant (for example whether to grant cash or equity and if the latter, what type);
- Frequency of awards and length of performance periods;
- Performance conditions / hurdles;
- Selection of suitable peer group comparison companies for relative performance measures;
- Vesting and testing schedules;
- Incentive monitoring services to track company performance against market-based targets and determine or verify the percentage of equity that vests to executives;
- Valuation of equity instruments via methodologies including Binomial and Black Scholes;
- Creation and Documentation of plan rules, resolutions of meeting and letters of offer; and
- Plan implementation and communication strategies.
We also offer an incentive monitoring service to track executive performance against incentive plan targets and determine or verify the percentage of equity that vests to executives.
IPO transactions and change programs
Company undergoing a transformation? Struggling to find the right remuneration settings? We provide advice on remuneration issues and documentation requirements for a broad range of corporate activities, including:
- IPOs or trade sales;
- mergers;
- acquisition or divestment of operating businesses;
- relocation or restructure;
- privatisations;
- re-capitalisation events; and
- Board level changes and succession.
Government pay reviews
Want an advisor with extensive experience in the public sector? We regularly consult with government departments and bodies on reward levels for:
- Senior management, professional and administrative staff with value determination and pay reviews;
- Members of advisory Boards with both national and international representation and engagement;
- Executives serving on state or national industry corporate entities; and
- Government and parliamentary officer roles.
During periods of restructure, reform or privatisation we also assist with organisation structures and staff accountability documentation, as well as the development or refinement of performance management systems.
Our project work has covered government departments, agencies and corporatised entities at federal, state and local government level.
Board fee reviews
Non-Executive Director fees need adjustment? Drawing on our extensive benchmarking database, we provide recommendations for:
- Board fee pools;
- Chairman and Director retainer fees;
- Committee Chairman and Member fees;
- Shareholdings and equity participation; and
- Consultancy arrangements for significant ad hoc commitments.
Governance & Board Matters
Is your Board the best it can be? Based on our many years of experience advising Boards on critical remuneration, incentive and retention strategies, we also provide advice on Board governance, effectiveness and management including:
- Composition: advice on Board renewal, Director development and using a Board capability matrix to uncover diversity and skills requirements for the future
- Effectiveness: evaluation of the performance and relationships of the Board, its committees and individual Directors and creation of performance and motivation strategies and benchmarks
- Governance: assistance with the creation of appropriate documentation and processes including Board charters, policies and required changes to the constitution
- Succession planning: groundwork for a smooth transition of chairman or CEO
- Strategy and vision: stress tests of current strategies and discovery of hidden risks and opportunities for expansion