LEADERSHIP & STRATEGY
“ As companies adapt their 2021 incentive plans to the current reality , they should consider whether the changes are temporary to reflect these unusual times or are more reflective of longerterm changes in the business landscape and strategy .”
50 — Don Delves , Managing Director , Practice Leader , Executive Compensation , North America , and Trey Davis , Executive Compensation Leader , Willis Towers Watson
6 | Transitioning to long term incentive ( LTI ) mix : whilst many companies in Asia have begun to move to an LTI mix , Delves and Davis cautions that 2021 may be the appropriate time for companies to ensure that they are not relying too much on performance vesting shares – a common executive compensation initiative for Aisan companies compared to Western markets .
7 | Annual goals for long term performance plans : with the continued economic uncertainty as a result of the pandemic , it is nearly impossible for companies to set realistic three-year goals . Instead Delves and Davis state that organisations should consider developing three one-year goals . “ Rather than setting three-year cumulative goals , consider average performance over three
FEBRUARY 2021