Remuneration consultant Mercer Kepler insists that long-term incentive plans are an “effective” executive pay approach after MPs demand no new LTIPs in 2018.
Long-term incentive plans (LTIPs) are an "effective tool" for integrating executive pay with performance, according to a leading remuneration consultant, despite calls from politicians for an end to such remuneration structures. Gordon Clark, a partner at Mercer Kepler, told The Times that LTIPs need to be "carefully planned" with measures to reward "the right performance". He said many companies use them "effectively" so a "blanket ban" would be "counterproductive". In a report published earlier this month, MPs on the House of Commons business, energy and industrial strategy committee (BEIS) said no new LTIPs should be put in place from the end of this year. The report said: "We conclude that LTIPs should be phased out as soon as