Private Company Incentive Plan Design

Private equity backed development and investment company has grown substantially and seeks to implement a new long-term incentive plan that supports its next phase of growth.

Industrials

Industry

$8B

Assets

1K+

Employees

KEY CHALLENGES

CEO Transition

The retirement of a long-standing CEO and the appointment of a new CEO could create disruptions and flight risks among the leadership team.

Growth Capital Uncertainty

The company must pursue new projects and acquisitions, despite uncertainty regarding its access to growth capital.

Retention Concerns

Current LTI plan is ending and the company has concerns over senior management retention as the current incentive program will provide significant wealth creation for executives due to exceptional performance.

APPROACH

Worked with management to develop a long-term incentive plan extending beyond three years to align with the horizon of the company's development projects and plan for a potential future liquidity event.

Designed a tax-efficient, value creation incentive program consistent with practice among private equity backed organizations and compliant with Canadian and US tax regulations.

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Structured the program to reflect the company’s increased size, complexity, and growth trajectory, while ensuring market competitive total compensation levels.

OUTCOME

A unique value creation long-term incentive program that aligns with strategic objectives, supports sustained growth, and ensures continued executive engagement through meaningful performance-based payouts.

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KEY OFFERINGS

Pay Philosophy & Strategy, Market Compensation Benchmarking, Performance & Incentives, IPO Support

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