Why are companies cancelling their share based payment structures?
Our recent interview on CNBC business related to share-incentive structures.
The combination of poor equity performance, cancelled dividends and lacklustre economic growth has proven a lethal concoction to these schemes – many are permanently impaired and will have to reviewed and at the very least reset.
Most Long-Term Incentive structures try to model an outcome based on consistent (fair) remuneration based on a benchmark. But these ALL fail during times like this because the premise (base), being share prices steadily increasing, no longer holds.