KEY EMPLOYMENT INCENTIVE PLANNING
Key employee incentive planning is about more than motivating or retaining leaders in a business. To us, this is about identifying, equipping, motivating, and empowering the next generation of company leaders. Additionally, in an internal succession, the use of deferred compensation and current cash flow of the business can be a compelling tool that gives the next generation means to buy into the business.
Ultimately, we aim to build a confident answer for business owners to the question “How do I replace myself?”
The more concrete part of this process is the implementation of an incentive plan such as the ones outlined in the chart below.
Intentionally discussing long-term retention and motivation of key players is as relevant for businesses considering third-party sale (see Exit Planning) as it is for business where those same key players will eventually buy into the business (see Succession Planning). Whether the business transition is to an external buyer, to family, or to key employees, the future of the business is dependent on the work of successive leadership and key management.
Consulting on the topic of motivating and empowering key employees in the context of a Succession Planning or Exit Planning transition is almost always a part of those engagements and therefore priced in to our scope of work there. However, we also do stand-alone engagements for key employee incentive planning with fees for design and implementation ranging from $7,500 – $12,500, depending on the number of participants and complexity of the plan.
To start the conversation on what type of plan might be best for your business, contact us and we can set up a free consultation with one of our partners.