Cash Plans & Incentives
It is often said that for employees “cash is king” and it is correct that salary and cash bonuses remain a critical part of an employee’s package.
We advise employers on structuring and implementing cash bonus plans to motivate employees to meet key business objectives including:
- sign on bonuses
- repayable bonuses/clawbacks
- guaranteed bonuses
- contractual and discretionary cash bonuses
- commission plans
- long term incentive bonuses including phantom schemes where share awards are inappropriate
We also advise on structuring cash pay in a more tax efficient way where possible such as salary sacrifice and flexible benefits plans, whether into pension or for lifestyle benefits such as cycle to work schemes.
In addition to cash, for senior staff a properly structured remuneration package will usually include an equity-based long-term incentive arrangement which can deliver substantial rewards if continued employment and corporate performance conditions are met. See our page on shares and options for more information. [LINK]
Resourcing for 2021: wider impacts of the present crisis10 March 2021
The final instalment of our three-part series of articles exploring resourcing challenges, opportunities and trends in 2021 examines a range of employment issues including reward strategy, outsourcing and collective representation.
Choppy waters ahead – long-term employee incentive plans in a recession28 July 2020
One of the many issues arising from the Covid-19 pandemic is its effect on existing long-term cash and equity incentive plans. We answer some of the key questions that businesses are asking.