Case Study – Strategic compensation – Privately held on-line betting exchange planning an IPO

Brief

To help the company formulate an appropriate compensation and benefits strategy in preparation for IPO and to design and implement short and long term incentive plans for all employees including top management.

Solution

  • MM&K interviewed the CEO and other members of the top management team
  • Using the results of those interviews, our knowledge of the business plan and of best practice, MM&K prepared a detailed report recommending a compensation strategy for our client
  • The report included:
  • a benchmarking exercise in relation to both salaries and bonus awards
  • examples of policy and practice in other companies regarded by our client as among its peers
  • a review of our client’s current policy and practice
  • recommendations for change
  • descriptions of incentive plan designs, their advantages/disadvantages and their associated tax and accounting implications
  • an analysis of non-cash benefits and key performance indicators (both short and long term)
  • MM & K also prepared financial models to illustrate the effects of our recommendations for both the client and employees