employee benefits live 2015: global reward - strategy or principles
TRANSCRIPT
Globalreward Strategy or principles?
• Executive pay review
• Executive STIP and LTIP
• Incentive principles
• Salary review principles
• Benchmark data procurement
What we manage globally…
What we manage locally
• Benefits design
• Benefits procurement
• Non-executive STIP
• Salary review budgets and distribution
• Recognition programmes
A global reward strategy: should we?
.
Considerations for programmes
Government considerations
Regulatory considerations
Cultural considerations
Internal framework
Gender pay gap: in force March 2016
Government considerations
UK government require companies with 250 or more employees
to report on the gender pay gap
Regulatory considerations
Country Advisory vote on the remuneration
report
Binding vote on future
remuneration policy
Binding vote on director
remuneration
Vote on share-based incentive
plans
Japan For companies with an audit and supervisory board
Option plans only
UK At least every 3 years USA Australia Changes only
France For companies voluntarily complying with the local code
Changes only When for board members
Italy Binding for financial institutions only
Germany Changes only Switzerland No but policy should be
described Netherlands Changes only
Shareholder votes: say on pay
Market expectations
Cultural considerations
Average
US
Average WoW
UK
Germany
France
Italy
Spain
Australia
Singapore
China
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
32%
42%
30%
33%
37%
31%
27%
27%
24%
31%
34%
10%
41%
7%
14%
5%
4%
8%
3%
5%
9%
1%
STIPLTIP
% of base salary
Cultural inconsistencies?
Cultural considerations
Requirements for consistency
Internal framework
Global Mature vs. emerging
Multiple zones Local
Typical approach
One global approach consistent across all
regions and markets
2 zones 3-5 zones
Defined for each country /
market
Geographic zoning
Mature and emerging markets
North America, Europe and Australia, emerging
markets etc.
Market zoning
Key business and new ventures
Multiple business activities
Globalisation and convergence
100 million users
Nationalism and protectionism
Think global act local?
• Budget and affordability• In line with market activity and affordability• In line with local legislation• Market legal requirements
• Overall affordability• Global principles
Global consideration
Local flexibility
Global with local flexibility: salary review
• Regulatory requirements• Perceived value or market worth• Income tax / social security benefits• Availability of benefits or suppliers
• Core requirements• EVP / brand supporting requirements• Global employees / nomads / 3rd country nationals
Global consideration
Local flexibility
Global with local flexibility: benefits design
• Local message• Key messages from a more visible line leader• More opportunity to use local teams as part of the
communications cascade
• Key message• Feeling of being part of something bigger
Global consideration
Local flexibility
Global with local flexibility: communication
Digital disruption
Keep it social
Bespoke engagement
@richardbeeby