Case Study – Strategic Compensation – Newly listed oil & gas E & P company

Brief:

Newly listed oil & gas E & P company. Concerned that remuneration strategy and practices were not consistent with business plan and status as listed company – in particular that share options were undervalued by majority of recipients. Wanted all employees to have an opportunity to acquire shares.

Solution

MM&K worked with board and Remuneration Committee to:

  • Define an agreed strategy consistent with business plan
  • Benchmark existing cash remuneration to market
  • Conduct employee climate study re attitudes to existing practices and employee aspirations
  • Design and implement (including training for in-house managers) salary progression and performance appraisal systems
  • Design and implement new short and long term incentives
  • Design and implement all employee share acquisition plan
  • Prepare and deliver HR policies including employee handbook