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As companies grow and develop, their needs, priorities, and challenges shift – just like people. At each stage of their journey, companies require employees with a diverse range of talents and need a compensation strategy that is customised to attract, retain, and motivate their workforce effectively. Below, we outline the key factors to consider for tailoring compensation to each stage of company growth:
Start-ups face the challenge of acquiring the right skills and fostering an entrepreneurial spirit. Since maintaining liquidity is imperative at this stage, incentives that promise a share in future success without depleting present cash reserves might be the way to go.
Growth companies must consolidate and formalise employee relations by establishing a compensation philosophy, principles, and policy. They should design an incentive plan that motivates and retains employees while complying with legal, regulatory, and reporting requirements. The total compensation system should reflect market standards and introduce STI and LTI programs with KPIs tied to the business strategy.
Mature organisations need to formalise these arrangements even further and may require guidance on their compensation committee, compensation governance and disclosure, as well as on compensation analysis and benchmarking.
Our Reward Team offers a comprehensive range of services in compensation design, implementation and maintenance services, tailored to support your company’s growth spanning the entire life cycle of your company. While these services are generally aligned with different levels of organisational maturity, we recognise that additional support may be necessary depending on the unique challenges your business faces at any given phase.
Organisations involved in deals will likely need assistance in reviewing existing incentives and designing and implementing retention plans to ensure that the new structure has the talent necessary to sustain and thrive.
Moreover, as businesses increasingly operate across multiple jurisdictions with varying tax and regulatory requirements, our team is here to help you navigate these complexities whilst maximising the benefits for both people and business.
Start-ups | Growth companies | Mature companies | Compensation in Deals | |
Compensation philosophy, principles and policy | ✓ | ✓ |
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Incentive plan design (STI and LTI) | ✓ | ✓ | ✓ | |
Incentive plan implementation (including plan rules and documentation, internal communication, tax rulings, employer reporting and withholding obligations as well as accounting considerations)
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✓ | ✓ | ✓ | |
Swiss and international income tax and social security on compensation & benefits | ✓ | ✓ | ✓ | |
Valuation considerations of non-listed shares for income and wealth tax purposes | ✓ | ✓ | ✓ | |
IPO readiness checks and preparation for non-listed companies | ✓ | ✓ | ✓ | |
Compensation committee advisor | ✓ | |||
Compensation governance | ✓ | |||
Compensation disclosure / compensation report | ✓ | |||
AGM and shareholder engagement | ✓ | |||
Benchmark of compensation (board and executive committee in Swiss market) | ✓ | |||
Report, roundtables and trainings for Swiss listed companies | ✓ |
When companies reach a mature stage, their essential needs are to align compensation structure with market practice and a pay for performance philosophy as well as adhere to additional governance and compliance requirements. To support mature companies achieve these objectives, we propose a panel of diverse products listed below.