Introducing long-term incentives

This whitepaper is designed to provide insights into different reward strategies and mechanisms that can be used by organizations to ensure their key people are retained, incentivized, and motivated to achieve long-term goals.

Businesses also need to think long term in terms of their organizational objectives and in doing so they need to carefully consider how they will incentivize and reward the key people who will help ensure those organizational objectives are met.

There is an opportunity for businesses in the Middle East to implement well-thought out, long-term reward strategies that are in line with organizational objectives and global best practices. These strategies can significantly contribute to the sustained performance of the business.

This whitepaper explains how incentive plans can impact different organizational stakeholders. It also describes the more common reward mechanisms used globally, being:

• Cash-based mechanisms,
• Performance shares,
• Leveraged equity mechanisms.

Some of the key considerations in relation to reward arrangements for organizations operating in the Middle East are also highlighted, such as:

• Aspects relevant to designing arrangements,
• Communicating the benefits of the plan to participants and third-party investors,
• Implications for the organization’s financial statements,
• Potential tax or social security implications.