Employee Incentive Schemes: 3 Trends Driving Change

Client Director, Paul Jeanne highlights key trends that have emerged within the employee incentive space following the implications of the Covid-19 pandemic.

For many employers the prolonged period of disruption as a result of Covid-19 has reiterated the value of an engaged and productive workforce. From our conversations with clients with existing employee incentive arrangements over the past few months, discussions around cashflows, share plans and the revision of hedging strategies have come to the fore. 

• Cashflow management

  Some companies used to wait until vesting to decide how they were going to source shares for their employee share plans. Covid-19 has demonstrated that this strategy cannot always be relied on if cashflow and market liquidity are impacted by external factors. It is therefore important to consider appropriate hedging strategies with your employee benefit trust (EBT) trustee.