Following internal discussions on the introduction of a long term incentive plan for the division, advise client on and design, implement and prepare documentation for a carried interest plan.
- using existing market knowledge, provide advice on design features, tax consequences and legal structure of a carried interest plan for the private equity division
- prepare financial models to determine quantum of payout under the plan under various “what if” scenarios
- using MM&K’s own market based data, provide advice on relative allocation of carry points between the members of the team
- prepare detailed carried interest plan specification, including recommendations as to treatment of leavers and joiners
- prepare initial draft rules and other ancillary documentation for approval by the Head of Private Equity and the Remuneration Committee
- oversee implementation, including first awards under the plan.