Insurance

Company :

Insurance Company

Mandate :

To assess the overall remuneration strategy with particular emphasis on Long term Incentives and corporate performance metrics.

Background :

The company had an issue with attracting and retaining Management and Executive talent. The diagnostic showed that this was principally because the remuneration arrangements were based on a traditional approach which had remained unchanged for many years. This exposed the company to interstate competitors who were able to poach otherwise very expensive skills at relatively low cost.

The company had toyed with the idea of simply increasing fixed pay for mission critical roles but this was, wisely, rejected by the Board in the first instance.

Solution :

The Board agreed to a substantial increase in total reward but only under circumstances where the shareholders were demonstrably better off. This was achieved through an adjustment to medium and longer term performance based reward.