3 Jul 2009

Cancellation of LTIP Awards

A number of companies have been addressing the issue of motivating executives during difficult times, particularly when element of their remuneration package may have become worthless, such as share options being under water, bonuses are not being paid and base pay is being frozen.  While the temptation to cancel such awards and start again must be there, caution should be exercised by companies, institutions are unlike to look favourable on such an approach.  This has been a bumper year for remuneration committee reports being voted down.