Audience Survey

Which best describes your company with respect to leadership incentive plans?

A. We provide executives with incentive compensation plans, but these plans are not directly aligned with stock value

B. We have a framework in place for a stock-based incentive structure for executives, but we have not yet implemented it fully

C. We have a stock-based incentive structure for executives, but the jury is still out on how impactful it is as an incentive and retention tool

D. We have a stock-based incentive plan for executives and we think it is an effective incentive and retention tool

Issue #9: Synthetic equity plans being used to attract, retain, and incentivize key employees

Why It’s Important

• Common for new ESOP formations to include a comp plan tied to equity value growth

• Retain and incentivize key employees to execute on company initiatives

• Grow earnings, grow value, repay debt

• Aligns key individuals with ESOP

• Tool to help attract new talent

Framework to Respond

• Identify individuals for plan

• Current

• Future

• Succession considerations

• One-time grant or annual grants as part of compensation plan

• Compensation studies to assist in targeting awards relative to title