Egan Associates

Cash and Equity Plans

Egan Associates provides advice on the design of incentive plans, both cash and equity based plans.

One of the most important aspects of incentive plan design is the measure of performance used which needs to be aligned to the business goals and strategyof the organisation and increasingly mindful of shareholder perspectives.

Performance measures can incorporate scorecards aligned to annual financial plans, strategic initiatives, milestones and sustainable longer-term performance.

Egan Associates is able to help clients respond to their incentive plan design challenges by developing performance criteria that support their business and help them achieve agreed business goals.

Clients regularly seek advice on the range of equity plan alternatives, including:

share, option performance share or rights plans
salary sacrifice plans allowing participants to purchase shares from pre-tax income and defer tax to a later date (subject to legislative limits)
deferred annual bonus plans.

The common dilemma facing clients is which is the best plan or combination of plans for their organisation. Egan Associates works closely with clients to ensure the most effective plan mechanism and design is in place. Assistance is provided with documentation and employee communications.

In addition to design advice, Egan Associates assists companies in tracking of share plan performance and potential rewards to employees.

We monitor Australian and international company performance indicators, including share price, TSR, EPS and ROE.

Clients can be sure of a plan design that suits their business and helps them reach defined goals.