Contact Us
Long-term incentive plans are excellence avenues to align key employees’ interests with the company’s overall long-term strategic goals and objectives. This requires carefully crafted performance metrics that will motivate and incentivize management to take certain actions for the betterment of stakeholders.
Overall Strategy
A&M assists companies with selecting metrics and calibrating the performance targets so that they are robust and challenging, yet achievable. Important questions to consider when implementing performance metrics within a compensation plan include:
- What goals does the company look to achieve?
- How is success defined with regards to these specific goals?
- What reporting or data collection mechanisms currently exist?
Latest Trends: ESG Metrics
While the alignment of executive compensation metrics with organizational financial metrics is widely used and accepted, organizations across all industries in both the public and private sectors are now adopting ESG-based incentives structured around several nonfinancial, or better yet, pre-financial targets. A&M can help companies looking to build ESG into compensation programs navigate this quickly evolving area, including:
- Which metrics to utilize
- How to weight the ESG goals within the compensation programs
- How to structure the metrics (objective vs. subjective)
RELATED INSIGHTS
Alvarez & Marsal (A&M) brings a dedicated team of compensation and benefits professionals who assist the C-suite and boards in designing new long-term incentive (LTI) plans and maximizing the effectiveness of existing plans.
The rise of ESG has dramatic and surprising implications for human capital and companies must reevaluate the ways they attract, maintain and cultivate the best possible workforce for long-term success.
Reducing the gender pay gap remains an important business consideration, but organizations should watch out for red flags and red herrings when conducting their analyses.
A View on the Autumn Budget 2025
November 26, 2025
See the latest commentary from our team of tax experts in relation to the UK Autumn Budget 2025.
Tax alert: 2025 Update to the OECD Model Tax Convention - Global Mobility and Beyond
November 21, 2025
On 19 November 2025, the OECD released the 2025 update to the OECD Model Tax Convention (OECD MTC), introducing significant enhancements aimed at improving tax certainty and providing clearer rules for governments, taxpayers and advisers around the globe.
A&M Tax Policy Insights – October 2025
November 19, 2025
A&M's October 2025 Tax Policy Insights tracks global trends, regulatory shifts, and strategies affecting cross-border operations, compliance, and policy.
Staying Ahead: Building Audit Readiness in a Changing Tax Landscape
November 18, 2025
Explore how the Thai Revenue Department is enhancing tax audits and revenue collection through AI, digital transformation, and targeted strategies for fiscal year 2026.
