Middle East
Executive Compensation | Aon

Executive Compensation

What is our perspective?

As the Middle East continues to buck global trends by delivering profitable growth in all areas of the economy, many firms are trying to ensure they lock down the team of executives who are responsible for delivering such impressive results. Undoubtedly talented individuals are in a position to command a price which is commensurate with their skills, however given the large amounts of money involved in executive pay we have observed that many firms are now seeking to ensure that they see a significant return on their investment in executive compensation.

Our view is that companies must ensure that the deal is competitive but that it balances the need to attract and retain talent with the need to provide value for money for shareholders.

How can we help clients?

We are the market leaders in designing executive compensation packages which ensure the shareholders and the executive are both treated fairly.
Our global database allows us to benchmark very precisely what a competitive deal should be both within the specific industry sector and within the Middle East market. However, often with the executive compensation market the key is not solely the quantum of pay, it is how it is delivered.
Obviously we can help with the guaranteed pay elements and we can help with the design of the annual incentive plan, however, our team contains the right level of seniority therefore we can inspire confidence in your senior team and your owners that we can deliver a top class set of recommendations to your company.

Our expertize in designing long term incentives which link the delivery of corporate performance and the long term strategy to executive pay is second to none.

Within the region we have designed a large number of plans with many different delivery vehicles. We have designed phantom plans for family owned businesses where the owners want to see the executive rewarded for the wealth they create with the trappings of equity but without diluting ownership.

We have designed cash based plans, equity plans and many variants in between. Essentially we can use our knowledge and experience to tailor a plan design to the specific set of circumstances each client presents. However we feel that our market leading differentiator is our ability to ensure that stakeholders and the executive beneficiaries fully understand the plan design and how it fits into a competitive market offering. One of the challenges faced in this region is that global talent often bring their compensation expectations to the table and the leadership group in local companies often need to be appraised of the pros and cons of various approaches by a neutral third party. Our skill in explaining the deal construct in a simple and straightforward way gives our clients confidence that they are doing the right thing for their business and spending their reward budget well.

We can help our clients by making fact based recommendations on the key issues such as:

  • The appropriate comparator market for benchmarking purposes
  • The appropriate payment vehicle (equity or cash or phantom equity)
  • The vesting schedule for the award and the right balance between retaining an employee for a period of time or losing their interest as the payment is too far into the future
  • The importance of relative corporate performance – we can help you think about performance metrics which will allow your business to be compared against relevant comparators

Our key differentiating factor is that we see our projects through to completion and we help our clients communicate the plans and embed them in the organization. Our implementation strategy helps ensure your executives are firmly focused on delivering the company strategy as this is totally aligned with their own financial well being.

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