Nordhaven’s incentive advisory continues to grow

25 may 2020

The owners and boards of our clients have kept the incentives high on the priority list. During the last 12 months our dedicated incentives team has advised ca. 40 clients in aligning management interest with shareholder interest through tailored incentive structures and, thus, promoting the achievement of strategic targets in the long term.

The advisory projects have varied from traditional equity-based incentives to transaction bonus programs as well as providing value-adding continuous services to ongoing plans. We have also provided incentives advisory to complex M&A situations, including listed company mergers and public takeovers. Some examples of our advisory include e.g.

  • Ahlstrom-Munksjö: matching share plan
  • Altia: performance share plan
  • Amer Sports: a variety of new incentive plans following the company’s de-listing
  • Nixu: all employee matching share plan
  • Listed industrial multinational: transaction bonus advisory

 

Incentives and the uncertainty in the market environment

We currently live in the middle of coronavirus crisis. Companies are forced to adjust value chains and workforce and to reduce cost and preserve cash. These changes may lead to a situation where even carefully crafted incentive plans do not drive the business as initially targeted. In many cases the reconsideration of short-term incentives would be the primary way to react. Additionally, we advise our clients to adjust their incentive structures or even to replace them to better fit to the changed market situation and new priorities.

Shareholders’ Rights Directive

Due to the recent implementation of the Shareholders’ Rights Directive (“SRD”), we have actively supported our customers to prepare their remuneration policies and reports to comply with the new regulation. Going forward, listed companies must present the remuneration policy in the annual general meeting at least every four years from 2020 onwards and the remuneration report must be presented annually from 2021 onwards.

Nordhaven’s Board Compensation Report 2020 will be released in early autumn

Nordhaven’s Board Compensation Report is based on comprehensive benchmark data for board fees in Finland and in Sweden. The national implementation of the SRD will have an impact on the preparation and justification for board compensation. Our Board Compensation Report 2020 will be released in early autumn once the AGMs 2020 have been held.

Download the presentation for further case and alternative structure examples 

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