PROFESSIONAL SERVICES FIRM
The key was to quickly construct a reward system that could help develop a high level of trust with the management team. The system had to operate with a high level of transparency and with limited discretion applied by the founding shareholders.
The approach was to first define the relationship between profits, annual bonuses and rewards for shareholders that balanced short and longer term business performance. A phantom equity plan was developed which mirrored the benefits of owning equity so that the underlying reward structure was the same for all, including the founding shareholders.
The reward system cemented certain key executives in the business and has proved a key factor in recruiting other senior talent. Employees are now asking how they can increase their participation in the ownership of the firm.