In almost all cases, a corporate transaction will bring about the need to address remuneration arrangements. In a merger or takeover, there is a need to bring together two separate reward structures and cultures. In a demerger, the requirement is to create a new reward philosophy and structure that will best serve the new independent entity. Whatever the nature of the change, a significant transaction is likely to herald a shift in a company's shape and focus, which may suggest changes to remuneration.
For companies considering an IPO, life as a public company offers both opportunities and challenges. Significant work is often involved in defining your compensation philosophy and establishing incentive plans that will attract and retain key executive talent concurrent with, and in the months following, an IPO. Getting it right requires an in-depth understanding of market pay practices, including overall equity pool size, incentive structures and plan features.
At Aon’s Rewards Solutions, we have over 20 years' experience advising companies on transactions of all types and sizes. We have particular experience with cross-border mergers and companies looking to list on a US exchange.
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