One of the biggest compensation mistakes a private company can make is to try too hard to mimic public company long-term incentives (LTIs). While private companies have to compete with publicly traded firms for talent, the available incentive tools are very different in the two types of businesses. More importantly, private-company owners often have very different and specific objectives, risk orientations and time horizons.
That means that when considering LTIs for a privately owned company, it’s critical to start with the right set of questions. For a closer look at the key issues, read our recent article in WorldatWork’s Compensation Focus newsletter here.
Don Delves is a director in the executive compensation consulting practice in Willis Towers Watson’s Chicago office who leads the company’s closely held business consulting team. Steve Kline is a Chartered Financial Analyst and a director in the executive compensation consulting practice in Willis Towers Watson’s Pittsburgh office who leads the company’s efforts to develop innovative approaches to pay-for-performance measurement and analysis. Email firstname.lastname@example.org, email@example.com or firstname.lastname@example.org.