The main challenge was that the organisation operates in two distinct sectors with different strategic time horizons, regulatory oversight, and talent requirements. In addition, senior leadership at both companies had a poor understanding of their compensation plans and, as a result, undervalued them.
We collaborated with the remuneration committee chair, chief people officer, and head of total rewards to eliminate complexity, simplify the plan, and communicate its value to senior leadership at both companies. We identified targets and measures to encourage appropriate behaviours while assessing the risks. Once the programme was in place, a communications plan was developed to ensure senior leadership recognized the value of their incentives.