Expert executive incentive plan drafting services by the leaders in executive incentive designs

There are multiple documents that need to be considered and drafted that enable a listed company to provide short and long-term executive incentives.

Formal documentation is required to provide clarity to all stakeholders in a way that addresses design preferences specific to the business as well as demonstrating good governance practices, recognising the corporate culture, complying with legal requirements (including ASX listing rules where applicable), and to optimise tax outcomes for both the company and its employees.

Godfrey Remuneration Group (GRG) is a leader in this field, offering clients a comprehensive and integrated solution to maximise the impact of their executive incentives while minimising potential executive compensation issues. We take our clients from the initial exploratory and design phase through to drafting, communication and rollout of incentive plans – including insights into what actions can be taken to improve employee engagement and understanding.

GRG has spent 20 years working with a wide range of stakeholders including institution shareholder representatives to understand their evolving expectations. We can help your organisation strike a balance between the often competing requirements of internal and external stakeholders, such as managing external shareholder voting risks while meeting internal strategy requirements.

Make your executive incentive plan official with GRG’s Incentive Plan Documentation Service

GRG offers a market leading, integrated executive incentive plan drafting service that offers an extensive range of flexible and comprehensive short-term incentive (STI) and long-term incentive (LTI) designs, or even hybrid designs. In addition to the drafting of executive incentive plan rules, GRG also provides a full solution to all the additional documentation required for the effective communicate of incentive plan to both participants, shareholders and stakeholders. Our solutions cover every stage of incentive plan rollout, and assist administrators, boards and HR professions. GRG can provide:

  • Invitation/applications/offer/acceptance documents
  • Explanatory booklets in plain English with fully worked examples taking participants from grant calculation through to sale and tax settlement – this piece is critical to maximising employee comprehension and engagement, and minimising the questions that the HR team need to address.
  • Grant notice
  • Vesting notice
  • Cessation of exercise restrictions notice
  • Exercise notice
  • Settlement notice
  • Cessation of disposal restrictions notice

We also work with a wide range of plan administrators who can convert our documents into digital versions for online platforms.

Multiple solutions to optimise your executive incentive rollout

Shareholder communications – GRG draft a range of shareholder incentive communication, including resolutions for incentive shareholder approval

Employee share trust (EST) deed – this often-overlooked component leads to many companies losing a tax deduction worth 30% of their equity remuneration cost, or more when the share price is rising. ESTs may be run internally, or outsourced. Our deeds have been crafted with the benefit of working with a wide range of administrators and trustee service providers.

Remuneration report – GRG can assist with review and drafting of incentive communications needed in listed companies’ remuneration report (part of the Company’s Annual Report) and can advise on best practice as well as statutory obligations.

Shareholder approval – GRG can assist with drafting notice of meeting resolutions to get your new equity plans or grants to directors approved by shareholders. Understanding the minimum disclosure requirements is only the first step; understanding how to address governance expectations and investor preferences is absolutely essential.