The company faced several challenges that included a falling share price, a highly competitive market for executive talent, an American-based candidate, the need to align the new CEO’s incentives with long-term company performance, and the necessity to ensure the award was attractive yet justifiable to shareholders.
We supported the remuneration committee with the design of a total package that would be sufficient to attract the highly thought of candidate and within the confines imposed by the remuneration policy. This included fixed pay, a benefits package including relocation, a mix of short-term and long-term incentives, and a recruitment award to immediately align the interests of shareholders and the incoming CEO. Our work involved making recommendations on vesting, performance conditions, peer group selection, and shareholder consultation.
As a result of our input, the CEO was recruited to the company and his impact delivered an immediate increase in share price. The remuneration is aligned with the company’s strategic objectives, ensuring that the new CEO is incentivised to create long-term shareholder value, and return the company to its previous position in the market.