Executive SearchAustralian Human Resources Institute (AHRI) HR Week Remuneration Presentation
September 4, 2007
Jasper Coghlan, Specialist Advisor, presented at the Australian Human Resources Institute’s HR Week Victorian State Conference on Linking Short Term Incentives to the Balance Sheet on 4 September 2007.
Jasper provided an overview of the key design features of a short term incentive plan (STI plan). He illustrated these through a case study which covered issues such as:
- Rationale for introducing or changing a STI plan
- Principles to decide the size of potential payments from a STI plan
- Various approaches to adjusting the size of STI payments based on individual performance
- Balance between corporate, division and individual objectives
- Decisions on the range of performance measures to be used
- Interaction between decisions on STI performance measures and the budget setting process
- Importance of regular communication with STI plan participants
- Governance of STI plans including the role of Remuneration Committees
Jasper is a specialist in the design of STI plans that closely link executive and company performance.
