Our client is a UK organisation who represent public and commercial interests within the utility sector. They had recently appointed a new Chief Executive to lead the re-organised company and his pay package included an incentive element that was subject to both Remuneration Committee approval and ‘consumer’ audit. However, the Rem Co sought an alternative solution to the established incentive approach. They wanted to include both tangible, rational, measurable indicators, alongside the less tangible, behavioural indicators, so consumers could have more confidence that the CEO’s activities, and that of the organisation, were focussed on their best interests.
OE Cam developed an approach that linked the established performance management process with stakeholder feedback. Stakeholder feedback incorporated these less tangible indicators such as expected technical and behavioural competencies, leadership style and an underpinning of the organisation values. In line with traditional schemes, we included financial and delivery targets, alongside personal objectives, all focusing on organisational and cultural aims. We also introduced ‘claw back’ elements to account for any reputational damage caused directly by the CEO or other actions that significantly impacted on the organisations’ effectiveness in delivering its core activities.
Incorporating these less tangible indicators, engaging the stakeholders and appropriate external influence, delivered a number of advantages for our client. It raised the profile of the organisation, has positively benefited consumers and rewards performance, behaviour and leadership style.