Areas of focus will include:

• General design issues: identifying your MIP’s objectives, evaluating the optimal MIP model for your business, and considering alternative or additional incentive tools for your management team;
• Global design issues: selecting participants and documenting and communicating your MIP in a manner that is legally compliant, effective, and appropriate across jurisdictions;
• Tax considerations: optimizing local tax treatment for MIP awards and identifying suitable structures to deliver tax efficiency in each jurisdiction;
• Regulatory compliance: ensuring compliance with local laws, such as corporate, securities, regulatory remuneration, and employment law rules;
• Restrictions on MIP awards: including leaver provisions, forfeiture and clawback clauses, and restrictive covenants that best protect the business; and
• Events in a MIP’s lifecycle: addressing potential issues around participant funding and planning for the impact of corporate events (such as sales or IPOs) or company underperformance on MIP awards.

If you would like to discuss how these issues will affect your own MIP or are considering creating a MIP, please contact one of us.

For a recording of our recent webinar Management Incentive Plans: A Global Perspective please contact the Events team.