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 fro
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